DPT-3 Penalty – Consequences of Not Filing DPT-3
DPT-3 Penalty – Consequences of Not Filing DPT-3
The penalty for not filing DPT 3 within the due date is Rs 5,000, and in case of continuing default, the company and its officers in default will be charged Rs 500 per day. The hefty penalty amounts will be charged under Section 73, if the company is not filing DPT-3 but is still accepting deposits. DPT-3 is a return of deposits that needs to be filed by all the companies, except government entities, to furnish information about the deposits, outstanding receipt of loans, and/or money other than the deposits with the MCA. It must be filed on June 30th every year to avoid penalties and non-compliance. Let’s explore the DPT-3, its importance, and the penalties you will face.
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DPT-3, also known as the Return of Deposits, is a mandatory annual filing requirement for companies in India (except government companies). It acts as a transparency measure with the MCA by reporting all deposits received by the company during the financial year, including those from members, directors, or any other party. This filing ensures compliance with the Companies Act 2013 and safeguards the interests of depositors by providing a clear picture of the company’s deposit liabilities. Failure to file DPT-3 can result in significant penalties for the company and its responsible officers.
Importance of Filing DPT-3 Form
Below, we have listed the reasons which emphasise the importance of filing the DPT-3 Form,
- Transparency and Compliance: Filing DPT-3 promotes transparency by disclosing the company’s deposit obligations to stakeholders like creditors, members, and regulatory authorities. This transparency fosters trust and demonstrates adherence to the Companies Act, 2013.
- Protecting Depositors: DPT-3 records all deposits received, providing a clear picture of the company’s liabilities to depositors. This record-keeping helps safeguard depositor interests by offering a mechanism for monitoring and ensuring responsible management of deposited funds.
- Regulatory Monitoring: The DPT-3 filing allows regulatory bodies to monitor companies’ financial health, particularly their deposit-related activities. This monitoring helps identify potential risks and ensures companies comply with relevant regulations regarding deposit acceptance.
- Maintaining Good Standing: Timely DPT-3 filing demonstrates responsible financial management and adherence to legal requirements. This fosters a positive reputation and avoids potential legal repercussions for non-compliance.
- Clarity on Deposits: The DPT-3 filing process helps companies differentiate between deposits and other financial transactions. This clarity ensures accurate financial reporting and avoids confusion around the company’s financial liabilities.
Deadline for Form DPT-3 Filing
The deadline for filing Form DPT-3 is June 30th of every year. It is set by the MCA announced through Notification on 22nd January 2024. This applies to companies required to report deposits or outstanding receipts of loans or money not considered deposits for the financial year ending on March 31st.
Let’s see the penalties and consequences you will encounter if you do not file a DPT-3 or not filed within the due data,
Types of DPT-3 Penalty
There are two forms of penalty related to DPT-3 filing,
- Penalty under Section 73 of the Companies Act, 2013
- Penalty under Rule 21 of the Companies (Deposit) Rules, 2014
DPT-3 Penalty under Section 73 of the Companies Act, 2013
There’s a hefty penalty associated with failing to file the DPT-3 form as mandated by Section 73 of the Companies Act, 2013. The amount of deposits should be repaid with due interest. And, the penalty can be as high as one crore rupees or double the amount of the deposit accepted by the company, whichever is lower. This amount can even reach a maximum of 10 crore rupees. On top of that, responsible officers of the company can also be personally penalised with imprisonment up to 7 years and a fine ranging from Rs. 25 lakhs to Rs. 2 crore.
DPT-3 Penalty under Rule 21 of the Companies (Deposit) Rules, 2014
Rule 21 of the Companies (Deposit) Rules, 2014 outlines a different penalty scenario for DPT-3 non-filing compared to Section 73 of the Companies Act. Here, the penalty is more focused on encouraging timely filing. If a company fails to file the DPT-3 form, the company and every responsible officer who is in default can be fined. This penalty can be up to Rs. 5,000 initially. For every day the company remains non-compliant after the initial lapse, an additional fine of Rs. 500 can be imposed. This acts as a deterrent for continued non-filing.
The following table summarizes the penalties for non-filing of DPT-3 under the Companies Act and relevant Rules,
| Provision | Penalty for Company | Penalty for Officers |
| Section 73, Companies Act, 2013 | Higher of ₹1 crore or twice the deposit amount (maximum ₹10 crore) | Imprisonment up to 7 years and a fine of ₹25 lakh to ₹2 crore |
| Rule 21, Companies (Deposit) Rules, 2014 | Fine up to ₹5,000 (additional ₹500 per day for continued non-filing) | No separate penalty for officers under Rule 21 |
Ensure to file your DPT-3 with accurate details before the due date to avoid penalty and non-compliance!!
Conclusion
To ensure compliance and avoid penalties, companies in India (except government entities) must complete the DPT-3 filing by June 30th each year. This filing discloses deposit information to the MCA and safeguards depositor interests. Failure to file results in penalties. A one-time fine of Rs. 5,000 applies initially, with an additional Rs. 500 daily for continued non-compliance. Additionally, Section 73 of the Companies Act outlines several penalties, potentially reaching up to Rs. 10 crore for the company and imprisonment for officers.
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