July 23, 2024



Ensure Compliance to Avoid Penalties

3 min read
Ensure Compliance to Avoid Penalties

As the fiscal year comes to a close, it’s crucial for companies to stay on top of their compliance obligations. One such critical requirement is the filing of Form DPT-3, with the deadline fast approaching on June 30, 2024. This article will provide an in-depth understanding of the DPT-3 filing, its applicability, detailed steps for filing, and the consequences of non-compliance.

Who Needs to File DPT-3?
All companies, except government companies, are mandated to file their annual returns on deposits and outstanding receipts not considered deposits in Form DPT-3. This requirement applies to:

Private Limited Companies
Public Limited Companies
One Person Companies (OPCs)
Section 8 Companies

Special Note for Public Limited Companies: Public Limited Companies must also report any deposits they receive from the general public. This is not applicable to Private Limited Companies and OPCs, as they are prohibited from accepting deposits from the general public.

What is DPT-3 and What Needs to be Reported?
DPT-3 is a return of deposits that companies must file to provide comprehensive information about:

Deposits: Any amount of money received by the company that qualifies as a deposit under the Companies Act, 2013.
Outstanding Receipt of Loan or Money Other than Deposits: This includes any money received by the company that is not classified as a deposit.

Examples of Deposits & Exempted Deposits

Deposits: Amounts received from shareholders or public (in the case of Public Limited Companies) which are considered deposits under the Companies Act.
Loans: Money borrowed from directors or their relatives.
Advances: Advance payments received from customers for future supply of goods or services.
Security Deposits: Money received as security for the performance of a contract.
Inter-Corporate Loans: Loans received from other corporate entities.

Filing Deadline and Procedure
The due date for filing the annual return in Form DPT-3 is 30th June of every year. For instance, for the financial year 2023-24, the deadline is 30th June 2024.
Filing Procedure:

Gather Necessary Information: Compile all relevant financial information and documentation related to deposits and non-deposit receipts.
Complete Form DPT-3: Accurately fill out the form with the required details.
Submit Online: File the completed form electronically through the Ministry of Corporate Affairs (MCA) portal.
Pay the Fees: Pay the applicable filing fees online as specified on the MCA portal.

Exemptions from DPT-3 Filing
Certain companies are exempt from the requirement to file DPT-3 annually, which includes:

Government Companies
Non-Banking Financial Companies (NBFCs)
Housing Finance Companies registered with the National Housing Bank

Cost of Non-Compliance
Failing to comply with the DPT-3 filing requirements can lead to severe penalties:

Under Section 73: A penalty of at least ₹1 crore or twice the amount of deposits, whichever is lower, which may extend up to ₹10 crore.
For Officers in Default: Imprisonment for up to 7 years and a fine of at least ₹25 lakhs, which may extend up to ₹2 crore.
Under Rule 21: A fine of up to ₹5,000 for the company and each officer in default, and if the contravention continues, a fine of ₹500 for every day of default.

Steps to Ensure Compliance

Review Financial Practices: Regularly review your company’s financial transactions to ensure compliance with the Companies Act.
Consult Professionals: Seek advice from legal and financial professionals to stay updated on compliance requirements.
Timely Filing: Start preparing for the DPT-3 filing well in advance of the due date to avoid last-minute issues.
Stay Informed: Keep abreast of any changes in regulations related to deposits and filing requirements.

Ensuring compliance with the DPT-3 filing requirement is crucial for avoiding hefty penalties and ensuring the smooth operation of your business. Take proactive steps to review your financial practices and complete your filing well before the deadline. If you have any questions or need further clarification, please reach out for assistance.

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