How to File Form DPT-3: Reporting Loans and Deposits of Your Company
- adityas41
- Feb 24
- 10 min read
As a company director or compliance officer in India, one of your key responsibilities is to ensure that your company's financial transactions are properly reported and comply with the relevant laws. When it comes to loans and deposits, Form DPT-3 is a crucial compliance tool that you need to understand and file accurately. In this post, we'll dive deep into what Form DPT-3 is, why it's important, and how you can navigate the filing process with confidence.
Understanding Loans and Deposits
Before we get into the specifics of Form DPT-3, let's first clarify what loans and deposits are in the context of a company.
A loan is a financial arrangement where a lender (such as a bank, financial institution, or individual) provides money to a borrower (in this case, your company) with the expectation of repayment, usually with interest. Your company might take loans for various purposes, such as funding working capital, purchasing assets, or expanding operations.
A deposit, on the other hand, is money that your company receives from the public, shareholders, or directors with an obligation to repay it after a specified period or on demand. Deposits are a way for companies to raise funds from sources other than banks or financial institutions.
Both loans and deposits are important sources of financing for companies, but they come with certain legal and reporting requirements to protect the interests of lenders, depositors, and the public at large. One such requirement is filing Form DPT-3.
What is Form DPT-3?
Form DPT-3 is a return that companies must file with the Registrar of Companies (ROC) to disclose the details of the money they have received as loans or deposits from their shareholders, directors, or the public. It's a way of keeping the regulatory authorities informed about a company's borrowing activities and ensuring compliance with the provisions of the Companies Act, 2013.
Think of Form DPT-3 as a financial diary where you record all the loans and deposits your company has taken during a particular period. It's a comprehensive statement that includes information like:
The names and addresses of the lenders/depositors
The amount of each loan/deposit
The date of receipt and repayment of each loan/deposit
The rate of interest payable on each loan/deposit
The security provided for each loan/deposit
The purpose for which each loan/deposit was utilized
By filing Form DPT-3, you're not only fulfilling a legal obligation but also creating a transparent record of your company's borrowing transactions.
Why is Form DPT-3 Important?
You might be wondering, why does the government need to know about my company's loans and deposits? Here's why Form DPT-3 is a critical compliance requirement:
Investor Protection: Form DPT-3 helps protect the interests of lenders, depositors, and the public by ensuring that companies disclose their borrowing activities transparently. It allows investors to make informed decisions about whether to lend money to or deposit money with a company.
Fraud Prevention: By mandating regular disclosure of loans and deposits, Form DPT-3 helps prevent companies from engaging in fraudulent or unsustainable borrowing practices. It acts as a check against companies taking on excessive debt or using borrowed funds for unauthorized purposes.
Regulatory Oversight: Form DPT-3 gives the ROC and other regulatory bodies visibility into a company's financial health and borrowing patterns. It helps them monitor compliance with the provisions of the Companies Act and take action against defaulting or non-compliant companies.
Good Corporate Governance: Filing Form DPT-3 is not just a legal requirement but also a reflection of a company's commitment to transparency and good corporate governance. It shows that the company is willing to disclose its financial transactions and operate in a responsible manner.
In short, Form DPT-3 is a crucial tool for building trust between companies, investors, and regulators. By filing it accurately and on time, you demonstrate your company's compliance and credibility.
Who Needs to File Form DPT-3?
The requirement to file Form DPT-3 applies to all companies that have received money as loans or deposits from their shareholders, directors, or the public. This includes:
Private limited companies
Public limited companies
One Person Companies (OPCs)
Nidhi companies
However, there are a few exceptions. The following types of companies are not required to file Form DPT-3:
Banking companies
Non-banking financial companies (NBFCs)
Housing finance companies
Companies that have not received any loans or deposits during the relevant period
It's important to note that even if your company is not required to file Form DPT-3, you still need to maintain proper records of all loans and deposits received and comply with the other provisions of the Companies Act related to borrowing.
When to File Form DPT-3?
The timeline for filing Form DPT-3 depends on the type of return being filed. There are two types of returns under Form DPT-3:
Annual Return: Every company that has outstanding loans or deposits must file an annual return in Form DPT-3 by June 30th of each year, disclosing the details as of March 31st (the end of the previous financial year).
For example, for the financial year 2022-23, the annual return in Form DPT-3 must be filed by June 30, 2023, disclosing the loans and deposits outstanding as of March 31, 2023.
One-time Return: Companies that had outstanding loans or deposits as of April 1, 2014 (the date when the relevant provisions of the Companies Act, 2013 came into effect) were required to file a one-time return in Form DPT-3 by March 31, 2015, disclosing the details of such loans and deposits.
This was a transitional requirement to capture the borrowing details of companies under the new law. If your company was incorporated after April 1, 2014, or did not have any outstanding loans or deposits as of that date, you don't need to file the one-time return.
It's crucial to adhere to these filing deadlines to avoid penalties and legal action for non-compliance. Make sure to mark your calendar and set reminders well in advance to gather the necessary information and file Form DPT-3 on time.
How to File Form DPT-3?
Now that we know what Form DPT-3 is and when to file it, let's look at the actual process of filing the form. Filing Form DPT-3 is an online process that needs to be completed through the MCA21 portal. Here's a step-by-step guide:
Step 1: Gather the Required Information
Before you start filling the form, make sure you have the following information ready:
Details of each loan/deposit received, including:
Name and address of the lender/depositor
Amount received
Date of receipt
Rate of interest
Repayment terms
Security provided
Purpose of the loan/deposit
Details of each loan/deposit repaid, including:
Name and address of the lender/depositor
Amount repaid
Date of repayment
Details of any outstanding loans/deposits as of the end of the financial year
Details of any default in repayment of loans/deposits or payment of interest
Having this information handy will make the form-filling process much smoother and faster.
Step 2: Access the Form
Log in to the MCA21 portal using your company's credentials. Navigate to the "Company Forms Download" page and select "Form DPT-3" from the list of forms. Click on "Download" to access the latest version of the form.
Step 3: Fill in the Details
Open the downloaded Form DPT-3 and start filling in the required details. The form has several sections covering different aspects of your company's loans and deposits:
Section 1: Company details (name, CIN, registered office address, email, etc.)
Section 2: Details of outstanding money as of April 1, 2014 (for one-time return)
Section 3: Details of receipt of money during the year
Section 4: Details of repayment of money during the year
Section 5: Details of outstanding money as at the end of the year
Section 6: Details of defaults in repayment or payment of interest
Fill in each section carefully, making sure the information is accurate and matches your company's records. Double-check the amounts, dates, and other details to avoid any discrepancies.
Step 4: Attach Supporting Documents
Form DPT-3 requires you to attach certain supporting documents, such as:
Auditor's certificate verifying the details provided in the form
List of depositors/lenders with their addresses and amounts
Copy of the board resolution authorizing the filing of the form
Optionally, any other relevant documents like loan agreements, security documents, etc.
Make sure these documents are in the prescribed format (usually PDF) and don't exceed the maximum allowed size.
Step 5: Verify and Submit
Before submitting the form, carefully verify all the details you've filled in. Check for any typographical errors, mismatches, or omissions. The form also has a built-in pre-scrutiny feature that flags any errors or inconsistencies.
Once you're satisfied with the details, click on the "Submit" button to file the form electronically. The form will be digitally signed using the DSC (Digital Signature Certificate) of the authorized signatory (usually a director or company secretary).
Step 6: Pay the Filing Fee
After submitting the form, you'll be directed to the payment gateway to pay the requisite filing fee. The fee amount depends on the authorized capital of your company and the type of return being filed (annual or one-time).
You can pay the fee online using a credit card, debit card, or net banking. Make sure to keep a record of the payment acknowledgment for future reference.
Step 7: Acknowledgment and Verification
Upon successful filing and payment, you'll receive an acknowledgment from the MCA21 system with a unique Service Request Number (SRN). You can use this SRN to track the status of your form on the portal.
The ROC will verify the details provided in your Form DPT-3 and may raise queries or objections if they find any discrepancies or non-compliances. Keep an eye out for any such communications and respond promptly to avoid delays in processing.
Once the ROC approves your form, it will be available for public viewing on the MCA21 portal.
Consequences of Non-Filing or Delayed Filing
Failing to file Form DPT-3 or filing it after the due date can have serious consequences for your company and its directors:
Monetary Penalty: The company and every officer in default (including directors) can be subject to a penalty of Rs. 5,000 per day of default, up to a maximum of Rs. 5 lakh.
Liability for Deposits: If a company fails to file Form DPT-3 or repay deposits as per the terms of the deposit agreement, the company and its directors can be held liable to repay the deposits along with interest.
Prosecution: In case of willful default or non-compliance, the company and its officers may face prosecution under the Companies Act, which can result in fines and imprisonment.
Reputational Damage: Non-filing or delayed filing of Form DPT-3 can also dent a company's reputation and credibility among investors, lenders, and the public. It may raise questions about the company's financial management and governance practices.
Therefore, it's crucial to prioritize timely and accurate filing of Form DPT-3 to avoid these consequences and maintain good corporate compliance.
Practical Scenario
Let's understand the filing of Form DPT-3 with a practical example.
Suppose ABC Private Limited has taken the following loans and deposits during the financial year 2022-23:
May 15, 2022: Loan of Rs. 10 lakh from XYZ Bank at 12% interest p.a., repayable in 24 monthly installments
August 1, 2022: Deposit of Rs. 5 lakh from Mr. A (a shareholder) at 10% interest p.a., repayable after 3 years
November 30, 2022: Loan of Rs. 15 lakh from DEF Non-Banking Finance Company at 14% interest p.a., repayable in 36 monthly installments
February 15, 2023: Deposit of Rs. 3 lakh from Mrs. B (a director) at 9% interest p.a., repayable on demand
As of March 31, 2023, the outstanding amounts are:
XYZ Bank loan: Rs. 7.5 lakh
Mr. A's deposit: Rs. 5 lakh
DEF NBFC loan: Rs. 14 lakh
Mrs. B's deposit: Rs. 3 lakh
In this case, ABC Private Limited needs to file its annual return in Form DPT-3 by June 30, 2023, disclosing the following details:
In Section 3 (Details of receipt of money during the year):
XYZ Bank loan: Rs. 10 lakh received on May 15, 2022, at 12% interest
Mr. A's deposit: Rs. 5 lakh received on August 1, 2022, at 10% interest
DEF NBFC loan: Rs. 15 lakh received on November 30, 2022, at 14% interest
Mrs. B's deposit: Rs. 3 lakh received on February 15, 2023, at 9% interest
In Section 4 (Details of repayment of money during the year):
XYZ Bank loan: Rs. 2.5 lakh repaid during the year
DEF NBFC loan: Rs. 1 lakh repaid during the year
In Section 5 (Details of outstanding money as at the end of the year):
XYZ Bank loan: Rs. 7.5 lakh outstanding as of March 31, 2023
Mr. A's deposit: Rs. 5 lakh outstanding as of March 31, 2023
DEF NBFC loan: Rs. 14 lakh outstanding as of March 31, 2023
Mrs. B's deposit: Rs. 3 lakh outstanding as of March 31, 2023
ABC Private Limited also needs to attach the auditor's certificate, list of depositors/lenders, and board resolution with the form. The form should be digitally signed by one of the directors and filed with the prescribed fee by the due date.
How Fiscal Flow Can Help
Filing Form DPT-3 and ensuring compliance with the provisions related to loans and deposits can be a complex and time-consuming process, especially for companies with multiple borrowing transactions. That's where Fiscal Flow comes in. As a trusted provider of compliance services in India, we can help you navigate the Form DPT-3 filing process with ease and expertise.
Here's how we can assist:
Information Gathering: Our team of professionals will work with you to gather all the necessary details of your company's loans and deposits, including amounts, dates, interest rates, repayment terms, and supporting documents. We'll ensure that the information is accurate, complete, and in the prescribed format.
Form Filling and Filing: We'll take care of filling in Form DPT-3 on your behalf, making sure that all the details are correctly entered and validated. Our experts will also handle the electronic filing of the form, including digital signature and payment of fees.
Compliance Tracking: With Fiscal Flow, you don't have to worry about missing the filing deadline or forgetting to file the form. We'll maintain a comprehensive compliance calendar for your company and send you timely reminders and alerts to ensure that Form DPT-3 and other returns are filed on time.
Query Resolution: In case the ROC raises any queries or objections on your Form DPT-3, our team will coordinate with the authorities and provide the necessary clarifications and documents to resolve the issues promptly.
Advisory Services: Beyond Form DPT-3, we provide end-to-end advisory services on all aspects of corporate compliance, including loans and deposits. We can help you structure your borrowing transactions, draft loan and deposit agreements, and ensure compliance with the relevant provisions of the Companies Act and other laws.
With Fiscal Flow as your compliance partner, you can focus on your core business while we take care of the regulatory nitty-gritty. Our goal is to simplify compliance for you and give you peace of mind.
Conclusion
Form DPT-3 is a critical compliance tool for companies in India to report their loans and deposits to the ROC. By filing this form accurately and on time, companies can demonstrate their transparency, protect the interests of their lenders and depositors, and avoid legal and financial consequences.
However, keeping track of all the borrowing transactions and ensuring compliance with the various provisions of the Companies Act can be a daunting task for many businesses. That's where partnering with a professional compliance service like Fiscal Flow can be a game-changer.
Our team of experts can guide you through the entire process of filing Form DPT-3.
