Many mandatory compliance forms are required for companies incorporated in India. One such form is DPT-3 about the acceptance of deposits by companies. However, if it fails to file DPT-3, then a company faces some pretty brutal penalties.

Hence, all businesses need to know about the consequences of not filing this form.

What is DPT-3?

MCA has mandated a DPT-3 form. This form is compulsory to be filled and furnished by all the companies accepting deposits. It is intended to give details of deposits accepted during the financial year by the company.

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Important Points About DPT-3

• Applicability: It applies to all companies and thus must be filed by all types of companies.
• Frequency: It is usually filed yearly.
• Deadline: It should be filed within a certain period after the close of the financial year.

Why Is DPT-3 Important?

There are several reasons why DPT-3 needs to be filed:

• Legal Compliance: It ensures that the companies comply with the Companies Act, of 2013.
• Transparency: It provides transparency about the deposits that a firm accepts.
• Investor Confidence: Right filing will entail Investor confidence and those other peoples' interest stakeholders will regain confidence.

How to File DPT-3

Filing for DPT-3 is essential as it will prevent any kind of penalty. Here is how to file DPT-3:

Step 1: Gather Relevant Information

Gather all the information you have regarding the deposits accepted. This includes:

• DSC 
• Name and address of depositors
• Terms of Deposit

Step 2: Obtain Login for the MCA Portal

You need to visit the Ministry of Corporate Affairs that is the official website, namely the MCA portal.

Step 3: Log in to the Portal

Log in through the account credentials. If you don't have an account then you may require creating one.

Step 4: Select Form DPT-3

Move to the forms section and click DPT-3.

Step 5: Fill up the Form

Write correctly and all the details and information that are filled in on the form. It is prudent to go through it carefully for any mistaken input.

Step 6: Submit the Form

After going through it, submit the form. Do not forget to retain the acknowledgment for your reference.

Penalties of Not Filing DPT-3 

Failure to file DPT-3 can have very serious consequences. Some of the most significant consequences and issues one firm may face are:

Monetary Penalties

This, as one can visualize, will immediately affect the financial book of the issuer in the form of attracting a monetary penalty. The penalty is usually quite severe and can be imposed as follows:

• In the case of Companies: The penalty for delay in filing DPT-3 is up to ₹5,000. This amounts to quite a huge chunk if calculated for days.
• For the Officials: Other officers who are involved in the same company also face punishment. They may be charged a fine of ₹1 lakh or more along with a daily penalty charge of ₹5,000.

Legal Consequences

Failure to submit DPT-3 may result in penal actions against the company. In some cases, this could also involve:

• Show-Cause Notices: Non-compliance by regulatory authorities may result in notices being issued to the company.
• Legal Proceedings: A company that remains non-compliant with DPT-3 for a long time may see lawsuits or further legal action against it and its directors.

Damage to Reputation

Lack of DPT-3 compliance may cause damage to the company's reputation.

• Investor trust: It is affected along with the management.
• Public Image: Always, a poor record in compliance will attract negative publicity.

Audit Issues

DPT-3 non-filing companies face issues at the time of audits. The auditors trigger a red flag against non-compliance, which leads to:

• Lengthy Audits: They take up additional time over the usual course of events.
• Higher Scrutiny: More scrutiny from regulators upon the company.

Ineligibility for Government Schemes

Unless a company is compliant with DPT-3, most government schemes make you ineligible for the same. Not filing will make the company ineligible for all those benefits wherein there are financial grants/ loans, leading to:

• Miss Grants or Loans: Companies miss grants or loans.
• Tax Concessions: Some tax concessions could be tied to compliance.

Tips on Preventing Penalties 

To avoid any effect of non-filing DPT-3, there are these tips:

• Reminders

Set reminders on important deadlines. Make use of calendars or digital tools to track.

• Accurate Records

Record detailed registers of all deposits. Filing will be straightforward and accurate.

• Professional Consult

Professional persons, especially financial advisors or a company secretary, can be advised if one is in doubt. These people can guide and ensure compliance.

• Reviews

Regular review of requirements for compliance issues will have been caught way earlier.

Conclusion

The filing DPT-3 is a legal formality; it is not a formality. Filing failures will expose the companies to several serious consequences, such as monetary penalties, legal issues, and reputational damage.

This is of great significance as far as business operations are concerned. Companies have to adhere strictly in order not to fall into the quagmire of non-filing. Proactive action will ensure businesses continue to find ways to be in good standing before regulatory authorities.

Maintaining compliance in a competitive market will build trust and confidence among the stakeholders. Hence, do not forget the DPT-3 filing in your company's compliance checklist.

Being diligent is being cautious about committing crimes, avoiding penalties, and continuing to grow a business.