Form DPT-3 Filing in India: Compliance Checklist for Companies Before 30 June

Who must file Form DPT-3?

Form DPT-3 is applicable to almost all companies, including the following:

1. Private companies
2. Public companies
3. One-Person Companies (OPCs)
4. Small companies
5. Listed companies
6. Unlisted companies

The following entities are exempt from filing:

• Banking companies
• Non-Banking Financial Companies (NBFCs) registered with the Reserve Bank of India (RBI)
• Housing Finance Companies (HFCs) registered with the National Housing Bank
• Government companies

Importantly, a company may be required to file Form DPT-3 even if it has not accepted any deposits, provided it has outstanding borrowings or receipts that fall within the reporting requirements.

Form DPT-3 remains a significant annual compliance obligation for companies with outstanding deposits, exempted deposits, or other reportable borrowings. As the filing deadline approaches, businesses should review their funding arrangements, verify the classification of liabilities, reconcile disclosures with audited financial statements, and complete the filing process within the prescribed timeline. A proactive review can help minimise compliance risks and avoid unnecessary penalties or regulatory scrutiny. – Ankur Munjal, Country Director, Dezan Shira & Associates India

Types of returns under Form DPT-3

Form DPT-3 contains multiple filing options depending on the nature of transactions being reported.

Deposits vs. exempted deposits: What companies must report 

Before filing Form DPT-3, companies should evaluate whether their outstanding liabilities constitute deposits or fall within the category of exempted deposits under the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014.

Deposits

The Companies Act broadly defines a deposit as any receipt of money by way of loan, deposit, or other borrowing arrangement, unless specifically excluded under the deposit rules.

Common examples of deposits include:

1. Loans accepted from the public
2. Loans accepted from shareholders by public companies
3. Customer advances that remain outstanding beyond the prescribed period

Companies accepting such amounts must evaluate whether the receipts trigger deposit-related compliance requirements under the Companies Act.

Exempted deposits

The deposit rules exclude certain categories of borrowings and receipts from the definition of deposits. These amounts are commonly referred to as exempted deposits and remain reportable under Form DPT-3 in specified circumstances.

Examples include the following:

• Loans received from directors
• Loans from relatives of directors, subject to prescribed conditions
• Inter-corporate borrowings
• Loans from banks and financial institutions
• Loans or financial assistance received from government authorities

For many private companies, exempted deposits account for the majority of reportable transactions disclosed through Form DPT-3.

Key transactions to review before filing

Companies should conduct a detailed review of their balance sheet as of March 31 to identify reportable liabilities.

Transactions generally reportable

The following categories commonly require disclosure under Form DPT-3:

• Loans from directors and shareholders
• Inter-corporate loans and borrowings
• Loans obtained from banks, NBFCs, and financial institutions
• Customer advances that exceed the prescribed timelines
• Accrued and unpaid interest relating to reportable borrowings

Transactions generally outside the reporting scope

Certain items are typically not reportable under Form DPT-3, including:

• Share application money pending allotment within the permitted period
• Customer advances settled within the prescribed timeline
• Trade payables and operational creditors
• Trade receivables and debtors
• Liabilities that do not arise from deposits, loans, or borrowing arrangements

Companies should nevertheless assess these items carefully to ensure that they do not inadvertently fall within the reporting framework.

Documentation and auditor certification requirements

The documentation required for filing depends on the nature of the transactions being reported.

An auditor’s certificate must accompany Form DPT-3 where the filing relates to a return of deposits or a return of deposits together with exempted deposits.

However, where a company files the form solely for exempted deposits, an auditor’s certificate is generally not required.

Given the potential compliance implications, companies should verify the appropriate filing category before submission.

Compliance considerations for corporate borrowings

Companies frequently raise funds from multiple sources throughout the financial year. Understanding the regulatory treatment of each funding source is critical when preparing Form DPT-3.

Companies should assess the nature of each borrowing arrangement rather than relying solely on the identity of the lender when determining reporting obligations.

DPT-3 compliance checklist

To facilitate timely filing, companies should complete the following compliance review:

Consequences of delayed or non-compliance

Failure to file Form DPT-3 within the prescribed timeline may result in additional filing fees and regulatory penalties.

Additional filing fees: The MCA imposes escalating additional fees based on the period of delay, with significantly higher costs for prolonged non-compliance.

Statutory penalties: Under Rule 21 of the Companies (Acceptance of Deposits) Rules 2014, both the company and its officers in default may face monetary penalties for non-compliance. Continuing defaults may attract additional penalties for each day the contravention continues.

ALSO READ: Compounding of Offenses Under the Companies Act 2013: A Practical Guide for Indian Companies

Key takeaways for companies

Several practical issues commonly arise during DPT-3 compliance reviews:

• Companies must file Form DPT-3 even if they only have exempted deposits, such as director loans or bank borrowings.
• Reporting obligations depend on the existence of outstanding balances as of 31 March irrespective of whether the balances changed during the year.
• Outstanding interest on reportable borrowings should generally be disclosed together with the principal amount.
• Companies are generally not required to file a NIL return where no reportable transactions exist.

Given the broad scope of the reporting requirement, companies should not assume that the absence of public deposits eliminates the need to file Form DPT-3.