DPT 3 & Compliance Requirements

A company can accept funds from 18 specified categories which will not be deemed as Deposits under Deposit definition as mentioned in Companies Act 2013. Ministry of Corporate Affairs has defined 18 categories under rule 2 (1) (c) of the Deposit Rules 2014 which are called Exempted Categories. DPT 3-  is a negative return,

MCA vide its notification dated 22.01.2019 notified that every company needs to provide details of funds accepted in previous years under these categories. 

 

Applicability :-

All companies (Except Govt companies and NBFC) are required to file Form DPT 3

Every company needs to file Initial return as on 22.01.2019 on or before 29th June 2019 and then Annual Return as on 31st March on or before 30th June every year.

Timeline :-

For Initial Return – 29th June 2019 and for Annual Return – 30th June 2019.

Initial Return: Amount of outstanding receipt of money or loan by company as on/from 1st April 2014 from any date (after incorporation) to 31.03.2019 under any of 18 specified categories under rule 2 (1) (c) of the Deposit Rules 2014 and it is Outstanding as on 31.03.2019.

Annual Return: Amount of outstanding receipt of money or loan by company as on 31.03.2019 under any of 18 specified categories under rule 2 (1) (c) of the Deposit Rules 2014 to 31.03.2019 and its Outstanding as on 31.03.2019.

There are 18 specified categories under rule 2 (1) (c) of the Deposit Rules 2014

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Prescribed Fee for filing with Late Fee

For , normal authorised share capital – (from Rs. 200/- to 600/- slab) and additional fee – upto 12 times of normal fee depending on delay in filing.

NIL Return is NOT required to be filed

 

Documentation @ DPT3

Mandatory: Signed attached excel sheet by management certifying details to be filled in Form DPT 3.

Recommendatory: Certificate from Statutory Auditors of the company giving details of Outstanding amount to be shown in Return. Since Balance Sheet will be affected with these disclosures.

Additionally,  Net Worth on the basis of Previous Audited Balance Sheet.

Newly Incorporated Company is also required to comply with Law of DPT-3, if any amount/loan accepted as per rule 2 (1) (c ) of Deposit Rules 2014. New company will also be required to file both returns.

Net worth in that case will be calculated as per current year values.

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What If not filed:-

Serious Implications if, management/Auditors are careless and not serious in providing details properly to be filled in Form…

Section 76A of the Companies Act 2013 will be applicable and following penalties will be attracted:

Section 76A. Where a company accepts or invites or allows or causes any other person to accept or invite on its behalf any deposit in contravention of the manner or the conditions prescribed under section 73 or section 76or rules made thereunder or if a company fails to repay the deposit or part thereof or any interest due thereon within the time specified under section 73 or section 76 or rules made thereunder or such further time as may be allowed by the Tribunal under section 73,—

(a) the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore rupees or twice the amount of deposit accepted by the company, whichever is lower but which may extend to ten crore rupees; and

(b) every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years and with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees:

Provided that if it is proved that the officer of the company who is in default, has contravened such provisions knowingly or wilfully with the intention to deceive the company or its shareholders or depositors or creditors or tax authorities, he shall be liable for action under section 447 (Fraud).

 

Income tax will soon be processing in one day; Integrated e-filing system needs to develop by Infosys

The administration on Wednesday said IT major Infosys will build up the cutting edge pay charge recording framework for Rs 4,241.97 crore which will chop down the handling time for comes back to one day from 63 days and speed up discounts.

The Cabinet, led by Prime Minister Narendra Modi, gave its “endorsement to consumption authorize of Rs 4,241.97 crore for Integrated E-recording and Centralized Processing Center 2.0 Project of the Income Tax Department”, Union clergyman Piyush Goyal said

Preparation media about the choice, he said the handling time at present for Income Tax Reurn (ITR) is 63 days and it will boil down to one day after execution of the task.

Goyal said the venture is relied upon to be finished in year and a half and will be propelled following three months of testing.

Infosys, he stated, has been chosen to execute the task after the offering procedure.

The present framework, he stated, has been a triumph and new undertaking will be more assessment amicable.

The e-recording and Centralized Processing Center (CPC) ventures have empowered start to finish mechanization of all procedures inside the Income Tax Department utilizing different inventive strategies to give citizen administrations and to advance deliberate consistence.
The Cabinet likewise authorized a merged expense of Rs 1,482.44 crore for the current CPC-ITR 1.0 undertaking up to 2018-19.

Goyal additionally educated that expense discounts worth Rs 1.83 lakh crore have been issued so far in the current monetary.

The choice will guarantee straightforwardness and responsibility other than quicker handling of profits and issue of discounts to the citizens’ ledger specifically with no interface with the Income Tax Department.

The expansive’s target of the reconciliation venture incorporates quicker and exact results for citizen, upgrading client involvement with all stages, enhancing mindfulness and training through persistent commitment, as per an official discharge.

Furthermore, it will likewise be advancing deliberate expense consistence and overseeing extraordinary interest.

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4 Tax sparing decisions for higher income and better future wealth

Financial planning is crucial for tax savings. Planning your finances would not only help you understand your income tax liability, but also check your expenses and maximize your returns on investment. In this way, you could invest in a variety of tax saving instruments and ensure that your investments maintain a steady return even in the wake of constantly fluctuating financial markets.

Overall, if you want higher incomes and better wealth in the future, plan your finances as soon as possible. To help, here’s our selection of the top four tax saving decisions you have to make.

1. Invest in a Unit Linked Insurance Plans (ULIPs):

In a single investment plan, ULIPs offer twin benefits of insurance and investment. Depending on your risk profile, age, income and financial goals, you can allocate the invested amount to a variety of equity and debt funds with ULIPs. In addition, you can also use life insurance cover during the policy period. One of the most important features of ULIP plans is that you can track your investments regularly by evaluating your funds ‘ net asset value (NAV). Your beneficiary would also receive the higher of the two values: the amount guaranteed or the fund value accumulated in the event of any eventuality. When we talk about the tax saving aspect of ULIPs, the premium paid is eligible for tax deductions in accordance with Article 80C, subject to a maximum of Rs 1.5 lakhs per year. In addition, the maturity benefits received by your beneficiary are exempted under the provisions of Section 10(10D). This makes ULIP one of the best tax saving tools that can help you to create a substantial corpus in the future and protect your family from unprecedented life situations.

2. Maximise Your Investments through Equity Linked Saving Schemes (ELSS):

ELSS, a type of mutual fund, was explicitly created to save taxes. Since ELSS investment is allocated only to equity funds, it is a slightly risky option but also gives higher returns (* returns are subject to market conditions). In addition, the premium invested in ELSS can be deducted from taxes up to Rs. 1.5 lakh, pursuant to Section 80C, while any long – term gains you gain at the time of exit will not incur any Long – Term Capital Gains Tax (LTCG) in accordance with current tax legislation. Another characteristic of ELSS funds is that you can invest in them by means of a systemic investment plan or SIP tax-saving. It is also important to note that ELSS investments made via the SIP route help you to minimize the risks associated with inflation – adjusted returns through compounding and rupee costs.

3. Save for Your Retirement:

It’s important that you save money for your retirement while you are still working. It is therefore recommended that you invest a portion of your income in a pension fund (also known as pension funds). You can thus not only plan a peaceful retirement life, but also benefit from tax benefits on the investment you make. Most pension funds from renowned insurers like Future Generali are hybrid in nature and you have the option of receiving a regular pension through the systematic redemption of the units. When we talk about the tax benefits provided by pension funds, the invested amount qualifies for a tax deduction up to Rs. 1.5 lakh according to section 80c.

4. Purchase a National Savings Certificate (NSC):

This scheme, introduced by the Indian Government as a low – risk investment scheme that could reach the majority of the population, is only available with the India Post. These certificates can therefore be obtained at the nearest post office, made on your behalf or in cooperation with another adult family member. You can also make the NSC in the name of a minor by a guardian only. The National Savings Certificate currently offers an annual compounded interest rate of 8 percent. That said, the interest rate is reset every three months, according to the G-Sec yields of the previous quarter. In addition, the interest earned each year is reinvested in the scheme until the date of early withdrawal or maturity. Investment in the NSC is eligible for deductions up to Rs in respect of tax savings. 1.5 lakh according to section 80c. Financial planning is essential in India if you want a high income now and maximize your wealth in the future. Not only must you create multiple sources of income early in your life, but you must also know how to save your income tax. Only then can you ensure that your investments maintain a healthy percentage of long – term returns, while you have the minimum possible tax liability.

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