FAQ on filing DPT-3 under Companies Act, 2013 and its rules

Summary: Form DPT-3 is an annual compliance form prescribed under Rules 16 and 16A of the Companies (Acceptance of Deposits) Rules, 2014 for reporting deposits and transactions not treated as deposits. The guidance explains its applicability, filing purposes, annual and one-time filing requirements, auditor’s certificate requirements, filing fees, processing modes, mandatory attachments, penalties for non-filing, and reporting obligations. It clarifies that almost every company other than Government companies is generally required to file Form DPT-3 if it has outstanding receipts not considered deposits, including loans, advances, inter-corporate borrowings, director loans, share application money, commercial papers, employee security deposits, and business advances. The document distinguishes between deposits and exempted receipts under Rule 2(1)(c), explains when exempted transactions may become deemed deposits, and provides practical illustrations for each category. It also discusses disclosure requirements, reporting methodology, net worth disclosure, professional certification, and compliance considerations to assist companies in accurate and timely filing.

RULES FOR FILING DPT-3

 Question: Under which provisions of the Companies Act and Rules is Form DPT-3 required to be filed?

 Answer: Form DPT-3 is required to be filed pursuant to Rule 16 and Rule 16A of the Companies (Acceptance of Deposits) Rules, 2014, which prescribe the filing of returns of deposits and particulars of transactions not considered as deposits with the Registrar of Companies. The aforesaid rules may be read as under-

 16. Return of deposits to be filed with the Registrar. –

Every company to which these rules apply, shall on or before the 30th day of June, of every year, file with the Registrar, a return in Form DPT-3 along with the fee as provided in Companies (Registration Offices and Fees) Rules, 2014 and furnish the information contained therein as on the 3Ist day of March of that year duly audited by the auditor of the company and declaration to that effect shall be submitted by the auditor in Form DPT-3.

 Explanation.- It is hereby clarified that Form DPT-3 shall be used for filing return of deposit or particulars of transaction not considered as deposit or both by every company other than Government company.

 16A. Disclosures in the financial statement.-

(1) Every company, other than a private company, shall disclose in its financial statement, by way of notes, about the money received from the director.

(2) Every private company shall disclose in its financial statement, by way of notes, about the money received from the directors, or relatives of directors.

(3) Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to 31st March, 2019, as specified in Form DPT-3 within ninety days from 31st March, 2019 along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.

 APPLICABILITY ON COMPANIES

 Question: Whether every company is required to file Form DPT-3 with the Registrar of Companies?

 Answer: Yes. As per Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014, every company to which the Rules apply is required to file a return in Form DPT-3 with the Registrar of Companies on or before 30th June every year.

The return shall contain particulars as on 31st March of the relevant financial year and must be duly audited by the company’s auditor. Further, pursuant to the Companies (Acceptance of Deposits) Amendment Rules, 2022, effective from 29.08.2022, the statutory auditor is required to furnish a declaration in Form DPT-3 regarding the particulars of deposits and liquid assets reported therein.

 PURPOSE OF DPT-3

 Question. For what purpose is Form DPT-3 filed?

 Answer. As per the Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014 and the revised Form DPT-3 pursuant to the Companies (Acceptance of Deposits) Amendment Rules, 2022 with effect from 29.08.2022, Form DPT-3 may be filed for the following purposes:

1. Return of Deposits – To furnish details of deposits accepted by the company.

2. Particulars of Transactions Not Considered as Deposits – To report outstanding amounts received by the company that are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

3. Return of Deposits and Particulars of Transactions Not Considered as Deposits – Where applicable, a company may file Form DPT-3 for both categories.

4. One-Time Return – To disclose details of outstanding money or loans received by the company which are not considered deposits under Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

Accordingly, Form DPT-3 is not restricted to reporting deposits alone. It is also required to report outstanding amounts such as loans, advances, inter-corporate borrowings and other receipts that are specifically excluded from the definition of “deposit” under the Companies (Acceptance of Deposits) Rules, 2014.

In practice, almost every company (other than Government companies and such other exempted companies) having outstanding amounts received that are not treated as deposits is generally required to file Form DPT-3 on an annual basis.

 Question: Prior to the Companies (Acceptance of Deposits) Amendment Rules, 2019, was there any requirement to file particulars of transactions not considered as deposits in Form DPT-3?

 Answer: No. Prior to 22.01.2019, Form DPT-3 was primarily used for filing returns relating to deposits accepted by a company. There was no specific provision requiring companies to file particulars of transactions that were not considered deposits.

However, pursuant to the Companies (Acceptance of Deposits) Amendment Rules, 2019, effective from 22.01.2019, an Explanation was inserted under Rule 16, which clarified as follows:

Accordingly, with effect from 22.01.2019, every company other than a Government company became required to use Form DPT-3 not only for reporting deposits but also for reporting outstanding receipts of money or loans that are not treated as deposits under Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

 ONE-TIME FILING REQUIREMENT UNDER RULE 16A(3)

 Question: What is the one-time filing requirement under Rule 16A(3) relating to Form DPT-3?

 Answer: As per Rule 16A(3) of the Companies (Acceptance of Deposits) Rules, 2014, inserted vide the Companies (Acceptance of Deposits) Amendment Rules, 2019 dated 22 January 2019, every company other than a Government company was required to file a one-time return in Form DPT-3 containing particulars of all outstanding receipts of money or loans received by the company which were not considered deposits under Rule 2(1)(c). The return was required to cover the period from 1 April 2014 to 31 March 2019 and had to be filed within 90 days from 31 March 2019, along with the prescribed fee under the Companies (Registration Offices and Fees) Rules, 2014.

 Question: Can both the one-time return and the annual return under Form DPT-3 be filed through a single form?

 Answer: No. Separate e-Forms DPT-3 are required to be filed for the two purposes. The e-Form DPT-3 contains separate radio buttons for different filing purposes and permits the selection of only one purpose at a time. Therefore, if a company is required to file both the one-time return and the annual return, it must file separate Form DPT-3 for each purpose.

 AUDITOR’S CERTIFICATE

 Question: Whether an Auditor’s Certificate is mandatory while filing Form DPT-3?

 Ans. The Ministry of Corporate Affairs (MCA), vide clarification dated 24.06.2019, has clarified that an Auditor’s Certificate is mandatory only when a company files a Return of Deposits under Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014.

 Question. Is an Auditor’s Certificate required when reporting transactions that are not treated as deposits?

 Answer. No. Where a company files Form DPT-3 for reporting amounts that are not considered deposits (such as exempted deposits, loans, advances, inter-corporate borrowings, etc.), an Auditor’s Certificate is not mandatory.

 Question. Whether the information furnished in Form DPT-3 must always be based on audited financial statements?

 Answer. No. The MCA, vide its clarification dated 24.06.2019, has clarified that the information relating to transactions that are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014 need not necessarily be derived from duly audited financial statements.

However, where a company files Form DPT-3 for the purpose of furnishing a Return of Deposits under Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014, the information as on 31st March of the relevant financial year should be based on duly audited financial statements.

Accordingly, audited figures are mandatory only in respect of a Return of Deposits. In the case of reporting outstanding amounts that are not considered deposits, the figures are not required to be drawn from audited financial statements.

 FILING FEE FOR DPT-3

 Question: What is the prescribed fee for filing Form DPT-3?

 Answer: The filing fee for Form DPT-3 is prescribed under the Companies (Registration Offices and Fees) Rules, 2014 and depends upon the company’s nominal share capital. 

Normal Filing Fee

S. No.	Nominal Share Capital (₹)	Fee (₹)
1	Less than 1,00,000	200
2	1,00,000 to 4,99,999	300
3	5,00,000 to 24,99,999	400
4	25,00,000 to 99,99,999	500
5	1,00,00,000 or more	600

 For companies not having share capital:

Normal filing fee is ₹200.

 Additional Fee for Delay in Filing

S. No.	Period of Delay	Additional Fee
1	Up to 30 days	2 times of normal filing fee
2	More than 30 days and up to 60 days	4 times of normal filing fee
3	More than 60 days and up to 90 days	6 times of normal filing fee
4	More than 90 days and up to 180 days	10 times of normal filing fee
5	More than 180 days	12 times of normal filing fee

 Question: In which cases is Form DPT-3 processed in STP mode and Non-STP mode?

 Answer: The processing mode of Form DPT-3 depends upon the purpose for which the form is filed:

1. Non-STP Mode

Form DPT-3 shall be processed in Non-STP (Non-Straight Through Processing) mode where the purpose of filing is:

• Return of Deposits, or
• Return of Deposit and Particulars of Transactions by a Company Not Considered as Deposits.

In such cases, the form is subject to examination and processing by the Registrar.

2. STP Mode

Form DPT-3 shall be processed in STP (Straight Through Processing) mode where the purpose of filing is:

• One-time Return for disclosure of details of outstanding money or loan received by a company but not considered as deposits in terms of Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014, or
• Particulars of Transactions by a Company Not Considered as Deposits as per Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

In these cases, the form is taken on record electronically without any further processing by the Registrar.

 Important: Since there is no provision for resubmission of Form DPT-3 processed under STP mode, the company must ensure that all particulars furnished in the form are correct and complete before filing.

 ATTACHMENT IN DPT-3

 Question: When is the attachment of the List of Depositors (in Excel format) mandatory in Form DPT-3?

 Answer: The List of Depositors (in Excel format) is required to be attached mandatorily with Form DPT-3 when all of the following conditions are satisfied:

1. In Field No. 3 (Purpose of the Form), either of the following options is selected:

• • Return of Deposit, or
  • Return of Deposit and Particulars of Transactions by a Company Not Considered as Deposit; and

2. The value reported in Field No. 11(e) – Balance of Deposits is greater than zero.

Therefore, where the company reports an outstanding balance of deposits and files the form under either of the above purposes, the List of Depositors in Excel format must be attached with Form DPT-3.

 Question: What are the contents of the “List of Depositors” required to be attached in Excel format with Form DPT-3?

 Answer: As per the Instruction Kit of Form DPT-3, the List of Depositors is required to be furnished in Excel format and should contain the following particulars:

Basic details of depositors			Particulars of deposits
	1	2	3	4	5	6	7	8	9
S. No.	Name of Depositors(s)	Address of depositors(s)	Amount of deposits accepted during the year		Amount of deposits repaid during the year	Balance of deposits outstanding at the end of year (3+4-5)	Amount of interest due on deposits	Amount of interest paid on deposits	Amount of interest payable on deposits at the close of financial year (7-8)
			Secured deposits	Unsecured deposits

 Question: When is a copy of the Trust Deed required to be attached with Form DPT-3?

 Answer: A copy of the Trust Deed is required to be attached with Form DPT-3 when the following conditions are satisfied:

1. In Field No. 3 (Purpose of the Form), either of the following options is selected:

• • Return of Deposit, or
  • Return of Deposit and Particulars of Transactions by a Company Not Considered as Deposit; and

2. The company has provided the SRN of Form CHG-1 or CHG-9 in Field No. 14, relating to the creation of charge for securing deposits.

Accordingly, where the return relates to deposits and the deposits are secured by a charge for which Form CHG-1 or CHG-9 has been filed, a copy of the Trust Deed must be attached mandatorily with Form DPT-3.

 PENALTIES FOR NON-FILING OF FORM DPT-3

 Question: What are the penalties for non-filing of Form DPT-3?

 Answer: The Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 do not prescribe a specific penalty exclusively for non-filing of Form DPT-3. Therefore, the general penalty under Rule 21 of the Companies (Acceptance of Deposits) Rules, 2014 becomes applicable.

 Penalty under Rule 21

If a company contravenes any provision of the Deposit Rules for which no specific punishment is provided in the Act, then:

• The company and
• Every officer in default

shall be punishable with a fine which may extend to ₹5,000; and

• In case of a continuing contravention, with a further fine which may extend to ₹500 for every day after the first day during which the default continues.

 Whether Section 76A Applies?

 Mere non-filing of Form DPT-3 does not automatically attract Section 76A of the Companies Act, 2013. Section 76A applies where a company:

• Accepts deposits in contravention of Sections 73 or 76 and the rules made thereunder; or
• Fails to repay deposits or interest thereon.

In such cases, the penalties are severe and may include:

• Fine on the company ranging from ₹1 crore to ₹10 crore, and
• Imprisonment of officers in default up to 7 years, along with fine ranging from ₹25 lakh to ₹2 crore.

 For mere non-filing or delayed filing of Form DPT-3, the applicable penalty is generally under Rule 21 of the Companies (Acceptance of Deposits) Rules, 2014, i.e., a fine up to ₹5,000 and a continuing fine up to ₹500 per day of default. Section 76A is attracted only where there is a substantive violation relating to acceptance or repayment of deposits.

NET WORTH REPORTING

 Question: Whether Net Worth in Field No. 9 of Form DPT-3 is required when the form is filed only for reporting transactions not considered as deposits?

 Answer: Field No. 9 of Form DPT-3 requires disclosure of the company’s net worth as per the latest audited balance sheet preceding the date of filing. However, where Form DPT-3 is filed solely for furnishing Particulars of Transactions by a Company Not Considered as Deposit under Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014, there is a view that the net worth disclosure is not substantively relevant, as the reporting pertains only to exempted receipts or loans and not to deposits.

In this regard, the MCA, vide its clarification dated 24.06.2019, clarified that information relating to transactions not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014 is not required to be necessarily derived from duly audited financial statements. On the other hand, where Form DPT-3 is filed for the purpose of a Return of Deposits under Rule 16, the information as on 31st March of the relevant financial year is required to be based on duly audited financial statements.

Accordingly, audited figures are mandatory only in respect of a Return of Deposits. Therefore, it may be argued that the net worth field is not strictly applicable when the form is filed exclusively for reporting transactions not considered as deposits.

However, since Field No. 9 forms part of the e-Form and may be configured as a mandatory field in the MCA filing system, companies generally disclose the net worth as per the latest audited balance sheet preceding the date of filing to avoid technical filing issues. Such disclosure is procedural in nature and should not be construed as altering the character of the reported transactions as exempted receipts or loans.

 PRACTISING PROFESSIONAL’S CERTIFICATION

 Question: Whether e-Form DPT-3 mandates certification by a practising professional (CA/CS/CMA in practice)?

 Answer: No. e-Form DPT-3 does not mandate certification by a practising Chartered Accountant, Company Secretary, or Cost Accountant in practice. The form is required to be digitally signed by the authorised director/KMP of the company. However, in cases where the form is filed for “Return of Deposit” or “Return of Deposit and Particulars of Transactions by a Company Not Considered as Deposit,” a declaration by the statutory auditor regarding particulars of deposits and liquid assets may be required as per the Instruction Kit. Accordingly, a practising professional’s certification is not a mandatory requirement for filing e-Form DPT-3.

 Question: Whether transactions already reported in the one-time return under Rule 16A(3) are also required to be reported in the annual return in Form DPT-3?

 Answer: Yes. All transactions falling within the ambit of Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014 and outstanding as on 31 March 2019 are required to be reported in the annual return in Form DPT-3, irrespective of whether such transactions were already reported in the one-time return filed under Rule 16A(3). Accordingly, the annual return is not limited to transactions undertaken during the financial year 2018-19; it must include all outstanding amounts covered under Rule 2(1)(c) as on the reporting date.

 REPORTING REQUIREMENT OF RECEIPTS OF MONEY OR LOANS THAT ARE NOT TREATED AS DEPOSITS

 Question: What loan-related details are required to be reported in Para 15 of Form DPT-3 regarding receipts of money or loans that are not considered deposits under Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014?

 Answer: In Para/Filed 15 of Form DPT-3, a company is required to disclose the particulars of receipts of money or loans that are not treated as deposits as on the end of the financial year. The following details are required to be reported:

 Loan Movement During the Year:

1. Opening Balance

2. Additional Loans received during the year

3. Loans Repaid during the year

4. Any Other Adjustments

5. Closing Balance

Ageing of Outstanding Loans (in years):

1.  Loans outstanding for less than or equal to 1 year

2. Loans outstanding for more than 1 year but less than 3 years

3. Loans outstanding for more than 3 years

These disclosures enable the Registrar to ascertain the movement and ageing profile of outstanding loans and receipts that are not considered deposits under the Companies (Acceptance of Deposits) Rules, 2014.

 Question: How should a company determine the amounts to be reported in Para 15 of Form DPT-3?

 Answer: To determine the amounts required to be reported in Para 15 of Form DPT-3, a company should carefully examine all liabilities appearing in its books of account as on the end of the financial year and identify whether any of such liabilities represent receipts of money or loans that are covered under the exemptions specified in Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014

In practical terms, the company should scrutinize each item of liability, such as loans, borrowings, advances, security deposits, share application money, inter-corporate borrowings, amounts received from directors, commercial papers, and other outstanding receipts, and classify them under the appropriate category prescribed in Rule 2(1)(c).

Accordingly, reporting in Para 15 is not limited to loans alone. Rather, it requires a comprehensive review of all outstanding liabilities to identify receipts of money that are not treated as deposits and to report them under the relevant heads along with the opening balance, additions during the year, repayments during the year, and closing balance outstanding as on 31st March.

This is the practical approach followed while preparing Form DPT-3: review the entire liabilities side of the balance sheet and map each outstanding receipt of money to the relevant clause of Rule 2(1)(c), wherever applicable.

DEPOSIT UNDER COMPANIES ACT 2013

Question: What is the definition of “deposit” under Section 2(31) of theCompanies Act, 2013?

Answer: As per Section 2(31) of the Companies Act, 2013, the term “deposit” includes any receipt of money by way of deposit or loan or in any other form by a company. However, it specifically excludes such categories of amounts as may be prescribed in consultation with the Reserve Bank of India.

Accordingly, while the definition of “deposit” is wide and covers all receipts of money in the nature of deposit, loan, or any other form, it is subject to the exclusions prescribed under the Companies (Acceptance of Deposits) Rules, 2014, which are framed in consultation with the Reserve Bank of India.

Thus, only those receipts which are not covered under the prescribed exclusions are treated as “deposits” for the purposes of theCompanies Act, 2013.

Question: What is a “deposit” as per Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014?

 Answer: Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014 defines the term “deposit” to mean any receipt of money by way of deposit, loan or in any other form by a company.

However, the Rule specifically excludes certain categories of receipts from the definition of deposit. Accordingly, amounts falling within the exclusions prescribed under Rule 2(1)(c), such as loans from banks and financial institutions, inter-corporate borrowings, amounts received from directors, share application money subject to prescribed conditions, business advances and other specified receipts, are not treated as deposits for the purposes of the Companies Act, 2013 and the Rules made thereunder.

Thus, every receipt of money by a company is generally regarded as a deposit unless it falls within one of the specific exclusions provided under Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

NON APPLICABILITY OF DEPOSIT RULES

Question: Which companies are excluded from the applicability of the Companies (Acceptance of Deposits) Rules, 2014?

Answer: As per Rule 1(3) of the Companies (Acceptance of Deposits) Rules, 2014, these Rules apply to every company except the following categories:

1. A banking company;

2. A non-banking financial company (NBFC) as defined in the Reserve Bank of India Act, 1934 and registered with the Reserve Bank of India;

3. A housing finance company registered with the National Housing Bank under the National Housing Bank Act, 1987; and

4. A company specified by the Central Government under the proviso to Section 73(1) of the Companies Act, 2013.

Accordingly, the provisions relating to acceptance of deposits under these Rules do not apply to the above-mentioned categories of companies.

AMOUNT OR TRANSACTION NOT CONSIDERED AS DEPOSIT UNDER RULES

 1. AMOUNT RECEIVED FROM GOVERNMENT

 Question: Whether an amount received from the Central Government, State Government, local authority, statutory authority, or an amount whose repayment is guaranteed by the Central Government or State Government is required to be reported in Para 15 of Form DPT-3?

 Answer: Yes. As per Rule 2(1)(c)(i) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received from the Central Government or a State Government, any amount received from a local authority or a statutory authority constituted under an Act of Parliament or a State Legislature, and any amount received from any other source whose repayment is guaranteed by the Central Government or a State Government, is specifically excluded from the definition of “deposit”.

However, although such amounts are not treated as deposits, they constitute receipts of money by the company. Accordingly, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money or loans not considered as deposits pursuant to Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

2. FOREIGN MONEY

Question: Whether amounts received from foreign Governments, foreign banks, multilateral financial institutions, foreign collaborators, foreign body corporates, foreign citizens or persons resident outside India are required to be reported in Para 15 of Form DPT-3?

 Answer: Yes. As per Rule 2(1)(c)(ii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received from foreign Governments, foreign or international banks, multilateral financial institutions, foreign Government-owned development financial institutions, foreign export credit agencies, foreign collaborators, foreign body corporates, foreign citizens, foreign authorities or persons resident outside India, subject to the provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder, is specifically excluded from the definition of “deposit”.

Accordingly, such amounts are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014. However, where such receipts of money or loans remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money or loans not considered as deposits pursuant to Rule 2(1)(c).

3. LOAN FROM BANKS

Question: Whether amounts received as loans or credit facilities from banks are required to be reported in Para 15 of Form DPT-3?

Answer: Yes. As per Rule 2(1)(c)(iii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received as a loan or facility from a banking company, the State Bank of India, its subsidiary banks, a banking institution notified by the Central Government under section 51 of the Banking Regulation Act, 1949, a corresponding new bank, or a co-operative bank, is specifically excluded from the definition of “deposit”.

Accordingly, loans, cash credit facilities, overdrafts, term loans, working capital facilities and other borrowings obtained from such banking institutions are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such loans or facilities remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money or loans not considered as deposits pursuant to Rule 2(1)(c).

 Question: Whether interest accrued and due / not due on borrowings is required to be reported in Form DPT-3?

 Answer: Form DPT-3 requires reporting of the outstanding amounts of receipts of money or loans, including those transactions which are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

In case of borrowings such as loans or debentures, the liability shown in the financial statements generally includes both the principal amount and interest accrued and due. Since Form DPT-3 requires disclosure of outstanding liabilities as on the end of the financial year, interest accrued and due (being a crystallised liability) is also required to be included in the reporting.

However, interest accrued but not due does not represent a presently payable obligation at the reporting date. Accordingly, such amount is not required to be reported in Form DPT-3.

Thus:

• Interest accrued and due → to be included in DPT-3 reporting
• Interest accrued but not due → not required to be reported

4. LOAN FROM SCHEDULED BANKS OR OTHERS

 Question: Whether amounts received as loans or financial assistance from Public Financial Institutions, Regional Financial Institutions, Insurance Companies or Scheduled Banks are required to be reported in Para 15 of Form DPT-3?

 Answer: Yes. As per Rule 2(1)(c)(iv) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received as a loan or financial assistance from Public Financial Institutions notified by the Central Government in consultation with the Reserve Bank of India, Regional Financial Institutions, Insurance Companies or Scheduled Banks, is specifically excluded from the definition of “deposit”. Accordingly, such loans or financial assistance are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money or loans not considered as deposits pursuant to Rule 2(1)(c).

5. AMOUNTS RECEIVED AGAINST THE ISSUE OF COMMERCIAL PAPER OR OTHER INSTRUMENTS

 Question: Whether amounts received against the issue of commercial paper or other instruments issued in accordance with the guidelines or notifications issued by the Reserve Bank of India are required to be reported in Para 15 of Form DPT-3?

 Answer: Yes. As per Rule 2(1)(c)(v) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received against the issue of commercial paper or any other instrument issued in accordance with the guidelines or notifications issued by the Reserve Bank of India is specifically excluded from the definition of “deposit”. Accordingly, funds raised through the issuance of commercial paper or other RBI-regulated instruments are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money or loans not considered as deposits pursuant to Rule 2(1)(c).

6. AMOUNTS RECEIVED BY A COMPANY FROM ANY OTHER COMPANY OR INTER COMPANY DEPOSIT

 Question: Whether amounts received by a company from any other company are required to be reported in Para 15 of Form DPT-3?

 Answer: Yes. As per Rule 2(1)(c)(vi) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received by a company from any other company is specifically excluded from the definition of “deposit”. Accordingly, inter-corporate loans, inter-corporate deposits, advances, or any other amounts received from another company are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money or loans not considered as deposits pursuant to Rule 2(1)(c).

Example: ABC Manufacturing Pvt. Ltd. receives an amount of ₹2,50,00,000 on 1st April 2025 from XYZ Trading Pvt. Ltd., which is another incorporated company, as an inter-corporate loan for working capital requirements.

Since the amount is received from another company, it falls under Rule 2(1)(c)(vi) of the Companies (Acceptance of Deposits) Rules, 2014 and is specifically excluded from the definition of “deposit”. Accordingly, the inter-corporate loan is not treated as a deposit, regardless of whether it is secured or unsecured, interest-bearing or interest-free.

Case 1: Loan outstanding at year end

As on 31st March 2026, the loan of ₹2,50,00,000 remains unpaid. The amount is still not a deposit, but it must be disclosed in Para 15 of Form DPT-3 as a receipt of money not considered as deposit.

Case 2: Repayment during the year

If the loan is fully repaid before the year end. No disclosure is required in Para 15 for outstanding amount (though disclosure may still be required based on reporting format for transactions during the year).

 Key takeaway: All inter-corporate receipts are excluded from “deposits” under Rule 2(1)(c)(vi), but outstanding balances must be reported in Form DPT-3 (Para 15).

 Question: Whether amounts received by a company from its holding company, subsidiary company, or other related companies are required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(vi) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received by a company from any other company is specifically excluded from the definition of “deposit”. Accordingly, amounts received from a holding company, subsidiary company, or any other group/related company in the form of loans, advances, or inter-corporate deposits are not treated as deposits under theCompanies (Acceptance of Deposits) Rules, 2014.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 as receipts of money or loans not considered as deposits pursuant to Rule 2(1)(c) of the said Rules.

Accordingly, inter-company transactions are not deposits but are still reportable in DPT-3 if outstanding at year end.

 7. SHARE APPLICATION MONEY

 Question: Whether share application money or advances received towards allotment of securities are required to be reported in Para 15 of Form DPT-3?

 Answer: Yes. As per Rule 2(1)(c)(vii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received and held pursuant to an offer made in accordance with the provisions of the Companies Act, 2013 towards subscription to any securities, including share application money or advance towards allotment of securities pending allotment, is specifically excluded from the definition of “deposit”, provided such amount is appropriated only against the amount due on allotment of the securities applied for.

Accordingly, share application money and advances towards allotment of shares, debentures or other securities, which satisfy the conditions prescribed under Rule 2(1)(c)(vii), are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

 Question: Under what circumstances can share application money or advance received towards allotment of securities be treated as a deposit?

 Answer: Although Rule 2(1)(c)(vii) of the Companies (Acceptance of Deposits) Rules, 2014 excludes share application money or advance towards allotment of securities from the definition of “deposit”, this exclusion is subject to certain conditions.

As per the Explanation to Rule 2(1)(c)(vii), if the securities for which the application money or advance has been received are not allotted within 60 days from the date of receipt of such money, the company must refund the amount to the subscribers within 15 days after the expiry of the said 60-day period.

If the company fails to refund the amount within the aforesaid period of 15 days, the amount shall be deemed to be a deposit under the Companies (Acceptance of Deposits) Rules, 2014 from the expiry of the said 15-day period.

Further, the Explanation clarifies that any adjustment of such application money or advance for any purpose other than allotment of the securities applied for shall not be regarded as a refund. Consequently, such adjustment may result in the amount losing the benefit of exclusion available under Rule 2(1)(c)(vii).

Accordingly, only those amounts which continue to satisfy the conditions prescribed under Rule 2(1)(c)(vii) can be reported in Para 15 of Form DPT-3 as receipts of money not considered as deposits. Any amount that has become a deposit due to non-allotment or non-refund within the prescribed time would cease to qualify for reporting under this category and would be required to be considered as a deposit for the purposes of the Rules.

 Example: ABC Developers Pvt. Ltd. receives ₹75,00,000 on 1st April 2025 as share application money from various investors for allotment of equity shares.

• The company issues a formal offer for subscription of shares in compliance with the Companies Act, 2013.
• The amount is kept separately and is intended to be adjusted only against allotment of shares.

Since the amount is received towards subscription of securities and is intended to be adjusted against allotment, it is covered under Rule 2(1)(c)(vii) and is not treated as a deposit under the Companies (Acceptance of Deposits) Rules, 2014.

Case 1: Shares allotted within 60 days

The company allots shares within 45 days of receipt of application money. The amount is properly adjusted against share capital and continues to remain outside the definition of deposit.

Case 2: Pending allotment at year end

As on 31st March 2026, ₹30,00,000 remains unallotted (within permissible time). The amount is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 3: Non-allotment beyond 60 days

If shares are not allotted within 60 days and the company fails to refund the money within 15 days thereafter: The amount automatically becomes a deemed deposit under Rule 2(1)(c)(vii), and deposit compliance provisions will apply.

 Key takeaway: Share application money is not a deposit if properly allotted or refunded within the prescribed time limits, but it must be reported in DPT-3 if outstanding at year end.

8. AMOUNT RECEIVED FROM DIRECTOR OR A RELATIVE OF DIRECTOR OF A PRIVATE COMPANY

 Question: Whether any amount received from a person who, at the time of receipt of the amount, was a director of the company or a relative of a director of a private company is treated as a deposit and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(viii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received from a person who, at the time of receipt of the amount, was a director of the company or a relative of the director of a private company is specifically excluded from the definition of “deposit”, subject to compliance with the conditions prescribed under the said Rule. Accordingly, such amount is not treated as a deposit under the Companies Act, 2013.

However, where such amount remains outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money or loans not considered as deposits pursuant to Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014..

Practical Note: For a private company, loans received from both directors and relatives of directors are covered by this exclusion. For a public company, the exclusion is available only for amounts received from a director, and not from a relative of a director.

 Example: XYZ Manufacturing Pvt. Ltd. receives an amount of ₹50,00,000 on 1st April 2025 from Mr. A, who is a director of the company at the time of receipt. The amount is given as an unsecured loan for business purposes and carries no interest.

Since Mr. A was a director at the time of giving the loan, the amount falls under Rule 2(1)(c)(viii) of the Companies (Acceptance of Deposits) Rules, 2014.

• Accordingly, this loan is not treated as a deposit, as it is specifically excluded under the said rule.
• The exclusion applies because the status of the lender as a director is relevant at the time of receipt of money.

Case 1: Outstanding at year end

As on 31st March 2026, the loan of ₹50,00,000 remains unpaid. It is still not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 2: Change in status

If Mr. A resigns as director after giving the loan, the nature of the transaction does not change. The exemption continues because eligibility is determined at the time of receipt.

 Key takeaway: Loans from directors (and in private companies, their relatives) are not deposits under Rule 2(1)(c)(viii), but must still be reported in Form DPT-3 if outstanding at year end.

 Question: What conditions are required to be satisfied for a loan received from a director of a company or a relative of a director of a private company to qualify as a transaction not considered as a deposit under Rule 2(1)(c)(viii)?

 Answer: As per the proviso to Rule 2(1)(c)(viii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received from a director of a company or a relative of a director of a private company shall be excluded from the definition of “deposit” only if the following conditions are satisfied:

1. The director or relative, as the case may be, furnishes a declaration in writing to the company at the time of giving the money that the amount is not being provided out of funds acquired by borrowing or by accepting loans or deposits from any other person; and

2. The company discloses the details of such money accepted from the director or relative in its Board’s Report.

Accordingly, obtaining the written declaration from the lender and making the requisite disclosure in the Board’s Report are essential conditions for availing the exclusion under Rule 2(1)(c)(viii). Where these conditions are fulfilled, the amount shall not be treated as a deposit. However, if such amount remains outstanding as on the end of the financial year, the particulars thereof are required to be reported in Para 15 of Form DPT-3 as a receipt of money not considered as a deposit under Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

 Example: ABC Technologies Pvt. Ltd. receives an amount of ₹1,00,00,000 on 1st April 2025 from Mr. X, who is a director of the company. The amount is given as an unsecured loan for working capital purposes.

To ensure that the loan is excluded from the definition of “deposit” under Rule 2(1)(c)(viii), the company complies with the following conditions:

• At the time of giving the loan, Mr. X provides a written declaration stating that the amount is not given out of funds borrowed or accepted as loans or deposits from others.
• The company includes the details of the loan from Mr. X in its Board’s Report for the financial year 2025–26.

Since both statutory conditions are satisfied, the amount received from the director is not treated as a deposit under the Companies (Acceptance of Deposits) Rules, 2014.

Case 1: Outstanding at year end

As on 31st March 2026, the loan of ₹1,00,00,000 remains unpaid. It is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 2: Non-compliance with conditions

If Mr. X fails to provide the required declaration or the company does not disclose the transaction in the Board’s Report. The exemption under Rule 2(1)(c)(viii) will not apply, and the amount may be treated as a deposit, attracting deposit compliance requirements.

 Key takeaway: Both conditions—written declaration + Board’s Report disclosure—are mandatory to claim exclusion for director/relative loans under Rule 2(1)(c)(viii).

9. AMOUNT RAISED BY THE ISSUE OF SECURED BONDS OR DEBENTURES OR COMPULSORILY CONVERTIBLE DEBENTURES

 Question: Whether any amount raised by the issue of secured bonds or debentures or compulsorily convertible debentures is treated as a deposit and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(ix) of the Companies (Acceptance of Deposits) Rules, 2014, any amount raised by a company through the issue of bonds or debentures shall not be treated as a deposit where:

1. The bonds or debentures are secured by a first charge or a charge ranking pari passu with the first charge on any assets referred to in Schedule III to the Companies Act, 2013, excluding intangible assets of the company; or

2. The bonds or debentures are compulsorily convertible into shares of the company within a period of ten years.

Accordingly, this clause covers both:

• secured bonds or debentures (whether convertible or not), and
• compulsorily convertible debentures (CCDs), whether secured or unsecured, provided conversion into equity is within ten years.

Thus, amounts raised through such instruments satisfying the above conditions are specifically excluded from the definition of “deposit” under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such amount remains outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

Further, the proviso to Rule 2(1)(c)(ix) provides that where bonds or debentures are secured by a charge on assets referred to in Schedule III (excluding intangible assets), the amount raised shall not exceed the market value of such assets as certified by a registered valuer.

Accordingly, for secured bonds or debentures to qualify for exclusion, the following conditions must be satisfied:

1. The charge must be a first charge or pari passu charge on eligible tangible assets;

2. Intangible assets shall not be considered for security cover; and

3. The aggregate borrowing must not exceed the market value of secured assets as certified by a registered valuer.

Where these conditions are fulfilled, the amount raised is not treated as a deposit.

 Example 1 (Secured NCDs): ABC Infrastructure Pvt. Ltd. raises ₹20,00,00,000 by issuing secured non-convertible debentures (NCDs) on 1st April 2025 to finance construction of a highway project. The debentures are secured by a first charge on plant, machinery, and project-related tangible assets, and the security cover is independently certified by a registered valuer at ₹25,00,00,000.

• The debentures are secured by a valid charge on tangible assets as per Schedule III of the Companies Act, 2013 (excluding intangible assets).
• The value of security cover exceeds the amount raised, as certified by a registered valuer.
• Therefore, the issuance satisfies the conditions under Rule 2(1)(c)(ix), and the amount is not treated as a deposit.

Case 1: Normal compliance and repayment

The company services interest and redeems the debentures as per schedule over 5 years. The outstanding balance remains a non-deposit liability throughout the tenure.

Case 2: Outstanding at year end

As on 31st March 2026, ₹18,00,00,000 of debentures remain outstanding. This amount is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 3: Security cover falls below requirement

If the market value of secured assets falls to ₹15,00,00,000 while debentures outstanding are ₹20,00,00,000:

• The security condition may no longer be satisfied.
• The company may need to reassess compliance with Rule 2(1)(c)(ix) and take corrective action (e.g., additional security or restructuring).

 Example 2 (CCDs): ABC Infra Pvt. Ltd. issues Compulsorily Convertible Debentures (CCDs) of ₹15,00,00,000 on 1st April 2025 to finance expansion of its infrastructure projects. As per the terms of issue, these CCDs will be compulsorily converted into equity shares within 8 years from the date of allotment.

• The debentures are not redeemable in cash and will mandatorily convert into equity within 10 years (i.e., within the permissible limit under Rule 2(1)(c)(ix)).
• Therefore, the instrument qualifies for exclusion from the definition of “deposit” under the Companies (Acceptance of Deposits) Rules, 2014.

Case 1: Normal conversion

On 31st March 2032, the CCDs are fully converted into equity shares as per the agreed terms. The amount is treated as equity conversion and never becomes a deposit at any stage.

Case 2: Outstanding at year end

As on 31st March 2026, the CCDs remain outstanding (not yet converted). The ₹15,00,00,000 is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 3: Non-compliance with conversion timeline

If the company fails to convert the CCDs within the stipulated 10-year period:

• The instrument may lose its eligibility for exclusion under Rule 2(1)(c)(ix).
• It may then be treated as a deposit, triggering deposit compliance requirements.

 Key takeaway: CCDs are not treated as deposits if they are compulsorily convertible into equity within 10 years, but must still be reported in DPT-3 if outstanding at the end of the financial year.

10. AMOUNT RAISED BY THE ISSUE OF LISTED UNSECURED NON-CONVERTIBLE DEBENTURES

 Question: Whether any amount raised by the issue of listed unsecured non-convertible debentures is treated as a deposit and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(ixa) of the Companies (Acceptance of Deposits) Rules, 2014, any amount raised by a company through the issue of non-convertible debentures (NCDs) shall not be treated as a deposit, provided that:

1. The non-convertible debentures do not constitute a charge on the assets of the company; and

2. The non-convertible debentures are listed on a recognised stock exchange in accordance with the applicable regulations made by the Securities and Exchange Board of India (SEBI).

Accordingly, amounts raised through listed unsecured non-convertible debentures satisfying the above conditions are specifically excluded from the definition of “deposit” under the Companies (Acceptance of Deposits) Rules, 2014.

The purpose of this exclusion is to recognize that listed non-convertible debentures are regulated securities subject to the disclosure, listing and investor protection framework prescribed by SEBI and the recognised stock exchanges.

However, where such amount remains outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

 Example: ABC Infra Pvt. Ltd. issues listed unsecured non-convertible debentures (NCDs) of ₹10,00,00,000 on 1st April 2025 to raise funds for infrastructure development. The NCDs are listed on a recognised stock exchange in accordance with SEBI regulations and do not create any charge on the assets of the company.

• The NCDs are unsecured and listed on a recognised stock exchange.
• They are issued in compliance with SEBI (Issue and Listing of Non-Convertible Securities) Regulations.
• Therefore, as per Rule 2(1)(c)(ixa), the amount raised is not treated as a deposit.

Case 1: Normal repayment during tenure

The company pays periodic interest and redeems part of the NCDs as per the repayment schedule. The outstanding balance continues to be a non-deposit liability, not subject to deposit rules.

Case 2: Outstanding at year end

As on 31st March 2026, ₹8,00,00,000 of NCDs remain outstanding. This amount is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 3: Non-compliance condition (charge created on assets)

If the company later creates a charge on its assets contrary to the conditions of issuance or regulatory framework:

• The exemption under Rule 2(1)(c)(ixa) may not apply.
• The classification may need to be re-evaluated based on facts and compliance position.

 Key takeaway: Listed unsecured NCDs are excluded from deposit definition due to SEBI regulation, but outstanding balances must still be reported in DPT-3 as non-deposit liabilities.

11. AMOUNT RECEIVED FROM AN EMPLOYEE OF THE COMPANY

 Question: Whether any amount received from an employee of the company is treated as a deposit and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(x) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received from an employee of the company, not exceeding his annual salary and received under a contract of employment in the nature of a non-interest-bearing security deposit, is specifically excluded from the definition of “deposit”. Accordingly, such amounts are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, provided they are within the prescribed limit and are in the nature of non-interest-bearing security deposits arising out of the employment contract.

However, where such amount remains outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

 Example: XYZ Manufacturing Pvt. Ltd. employs Mr. A as a senior engineer with an annual salary of ₹6,00,000. As per the employment contract, Mr. A is required to place a security deposit of ₹50,000 with the company, which is non-interest-bearing and refundable upon resignation or termination. On 1st April 2025, Mr. A deposits ₹50,000 with the company as an employment security deposit.

• The amount is received from an employee under a contract of employment.
• It is non-interest-bearing and does not exceed the employee’s annual salary.
• Therefore, as per Rule 2(1)(c)(x), it is not treated as a deposit.

Case 1: Normal refund on separation

Mr. A resigns on 31st March 2026, and the company refunds the entire ₹50,000 after adjusting any dues. The transaction is completed and no deposit implication arises.

Case 2: Outstanding at year end

If Mr. A continues employment as on 31st March 2026, the ₹50,000 remains outstanding. The amount is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit employee security deposit.

Case 3: Excess amount received

If the company collects ₹10,00,000 as “security deposit” from the employee, exceeding his annual salary:

• The exemption under Rule 2(1)(c)(x) will not apply to the excess amount.
• Such excess may be treated as a deposit under the Rules.

 Key takeaway: Employee security deposits are not deposits when within salary limits and non-interest-bearing, but must be reported in DPT-3 if outstanding at year end.

12. NON-INTEREST-BEARING AMOUNT RECEIVED AND HELD IN TRUST

 Question: Whether any non-interest-bearing amount received and held in trust is treated as a deposit and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xi) of the Companies (Acceptance of Deposits) Rules, 2014, any non-interest-bearing amount received and held in trust by a company is specifically excluded from the definition of “deposit”. Accordingly, such amounts are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, provided they are genuinely received and held in a fiduciary capacity as trust money and are not in the nature of a borrowing or liability of the company.

However, where such trust amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

 Example: ABC Realty Pvt. Ltd. acts as a collecting agent for maintenance charges of a housing society. As per arrangement, the company receives money from flat owners and is required to pass it on to the Resident Welfare Association (RWA) without retaining any benefit.

On 1st April 2025, the company collects ₹1,20,000 from various residents towards society maintenance and parking charges. This amount is non-interest-bearing and is held by the company in a fiduciary capacity (trust) before remittance to the RWA.

• The amount is not the company’s income or borrowing.
• It is held in trust for onward payment.
• Therefore, as per Rule 2(1)(c)(xi), it is not treated as a deposit.

Case 1: Timely remittance

The company remits the entire ₹1,20,000 to the RWA within the same financial year. The amount is fully settled and no deposit implication arises.

Case 2: Amount outstanding at year end

As on 31st March 2026, ₹30,000 is still pending remittance to the RWA. This amount is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt held in trust.

Case 3: Misuse of trust funds

If the company uses trust funds for its own business purposes instead of holding them in fiduciary capacity:

• The exemption under Rule 2(1)(c)(xi) may not apply.
• The amount may be recharacterised as a deposit or liability, depending on facts.

 Key takeaway: Amounts held in true fiduciary capacity (trust) are excluded from deposits, but must still be reported in DPT-3 if outstanding at the financial year end.

13. ADVANCES RECEIVED FOR SUPPLY OF GOODS OR PROVISION OF SERVICES

 Question: Whether advances received for supply of goods or provision of services are treated as deposits and when do such advances become deemed deposits under the Companies (Acceptance of Deposits) Rules, 2014?

 Answer: As per Rule 2(1)(c)(xii)(a) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of or for the purposes of the business of the company as an advance for the supply of goods or provision of services is specifically excluded from the definition of “deposit”, provided such advance is appropriated against the supply of goods or provision of services within a period of three hundred and sixty-five days from the date of acceptance of such advance.

Accordingly, such business advances are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, subject to fulfilment of the above conditions.

However, where such advances remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

Further, as per the proviso to Rule 2(1)(c)(xii), where any amount received under clauses (a), (b) and (d) becomes refundable due to the company not having the necessary permission or approval to deal in the goods, property or services for which the money was received, such amount shall be deemed to be a deposit.

In addition, as per the Explanation to Rule 2(1)(c)(xii), such refundable amounts shall also be deemed to be deposits on the expiry of fifteen days from the date they become due for refund if not refunded within that period, and the company shall thereafter comply with all applicable provisions relating to deposits under the Companies (Acceptance of Deposits) Rules, 2014.

 Example: XYZ Pvt. Ltd. receives an advance of ₹10,00,000 from a customer on 1st April 2025 for supply of machinery (goods). As per the contract, the goods are to be delivered within 6 months.

• The company is required to appropriate (adjust) this advance against supply of goods within 365 days from the date of receipt.
• The advance is therefore not treated as a deposit at the time of receipt under Rule 2(1)(c)(xii)(a).
• Accordingly, if the amount is still outstanding at the year end (31st March 2026), it will be reported in Para 15 of Form DPT-3 as a non-deposit receipt.

Situation 1: Normal compliance

If the company delivers the machinery by 30th September 2025 and adjusts the ₹10,00,000 against sales, the amount fully ceases to exist as an advance and no issue of deposit arises.

Situation 2: Non-approval / inability to supply goods

Assume the company does not have the required government permission/license to manufacture or supply the machinery. As a result, it cannot execute the contract.

• The advance becomes refundable.
• If the company does not refund the amount within the permitted time, it becomes a deemed deposit under the proviso to Rule 2(1)(c)(xii).

Situation 3: Deemed deposit trigger

Suppose the advance becomes refundable on 1st October 2025, but the company fails to refund it.

• The amount will be treated as a deposit after 15 days, i.e., from 16th October 2025.
• From that date, the company must comply with all deposit provisions under the Companies (Acceptance of Deposits) Rules, 2014, including reporting, return filing, and deposit-related compliances.

 Key takeaway: An advance is normally not a deposit, but it becomes a deemed deposit if it becomes refundable due to lack of approval and is not refunded within 15 days of becoming due.

14. ADVANCE AGAINST IMMOVABLE PROPERTY

 Question: Whether advances received in connection with consideration for immovable property are treated as deposits and when do such advances become deemed deposits under the Companies (Acceptance of Deposits) Rules, 2014?

 Answer: As per Rule 2(1)(c)(xii)(b) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of or for the purposes of the business of the company as an advance, accounted for in any manner whatsoever, in connection with consideration for immovable property under an agreement or arrangement is specifically excluded from the definition of “deposit”, provided such advance is adjusted against the immovable property in accordance with the terms of the agreement or arrangement.

Accordingly, advances received towards sale or purchase of immovable property are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, subject to timely adjustment as per the contractual terms.

However, where such advances remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

Further, as per the proviso to Rule 2(1)(c)(xii), where any amount received under clauses (a), (b) and (d) becomes refundable due to the company not having the necessary permission or approval to deal in the goods, property or services for which the money was received, such amount shall be deemed to be a deposit.

In addition, as per the Explanation to Rule 2(1)(c)(xii), such refundable amounts shall also be deemed to be deposits on the expiry of fifteen days from the date they become due for refund if not refunded within that period, and the company shall thereafter comply with all applicable provisions relating to deposits under the Companies (Acceptance of Deposits) Rules, 2014.

 Example: XYZ Developers Pvt. Ltd. enters into an agreement on 1st April 2025 with Mr. A for sale of a commercial shop for a total consideration of ₹50,00,000. As per the agreement, Mr. A pays an advance of ₹10,00,000 on the same date towards purchase of the immovable property.

• This advance is received in the ordinary course of business and is linked to an identifiable immovable property transaction.
• Therefore, as per Rule 2(1)(c)(xii)(b), the amount is not treated as a deposit at the time of receipt.
• If the transaction proceeds normally and the sale deed is executed within the agreed timeline, the advance is adjusted against the final consideration and no deposit implications arise.

Case 1: Normal completion of transaction

The company completes the sale on 31st December 2025, and the ₹10,00,000 is adjusted against the sale consideration. Hence, the amount never becomes a deposit.

Case 2: Transaction not completed due to lack of approval

Assume the company is unable to obtain necessary regulatory approval for the sale of the property. As a result, it cannot execute the transaction and becomes liable to refund the advance.

• The ₹10,00,000 becomes refundable due to lack of approval.
• If the company does not refund the amount within the prescribed time, it will be treated as a deemed deposit.

Case 3: Deemed deposit trigger

Suppose the advance becomes refundable on 1st October 2025, but the company fails to refund it.

• If not refunded within 15 days, i.e., by 16th October 2025, the amount will be treated as a deposit under the Rules.
• From that date, the company must comply with all provisions relating to deposits, including reporting and regulatory compliances.

 Key takeaway: Advances for immovable property are generally not deposits, but they become deemed deposits if refund is triggered due to lack of approval and not paid within 15 days.

15. SECURITY DEPOSITS FOR PERFORMANCE OF CONTRACTS FOR SUPPLY OF GOODS OR PROVISION OF SERVICES

 Question: Whether security deposits received for performance of contracts for supply of goods or provision of services are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xii)(c) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of or for the purposes of the business of the company as a security deposit for the performance of a contract for supply of goods or provision of services is specifically excluded from the definition of “deposit”. Accordingly, such security deposits are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such security deposits remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

16. ADVANCES UNDER LONG-TERM PROJECTS FOR SUPPLY OF CAPITAL GOODS

 Question: Whether advances received under long-term projects for supply of capital goods are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xii)(d) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of or for the purposes of the business of the company as an advance under long-term projects for supply of capital goods is specifically excluded from the definition of “deposit”, except where such advance falls under clause (b) relating to immovable property.

Accordingly, advances received under long-term projects for supply of capital goods are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, subject to the condition that they are received in the ordinary course of business and are to be adjusted against the supply of capital goods as per the terms of the contract.

However, where such advances remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

Further, as per the proviso to Rule 2(1)(c)(xii), where any amount received under clauses (a), (b) and (d) becomes refundable due to the company not having the necessary permission or approval to deal in the goods, property or services for which the money was received, such amount shall be deemed to be a deposit.

In addition, as per the Explanation to Rule 2(1)(c)(xii), such refundable amounts shall also be deemed to be deposits on the expiry of fifteen days from the date they become due for refund if not refunded within that period, and the company shall thereafter comply with all applicable provisions relating to deposits under the Companies (Acceptance of Deposits) Rules, 2014.

Example: ABC Engineering Pvt. Ltd. enters into a long-term contract on 1st April 2025 with a government PSU for supply of heavy machinery (capital goods) worth ₹2,00,00,000. As per the contract terms, the PSU pays an advance of ₹50,00,000 at the time of signing the agreement.

• This advance is received in the ordinary course of business under a long-term project for supply of capital goods.
• Accordingly, as per Rule 2(1)(c)(xii)(d), the amount is not treated as a deposit at the time of receipt.

Case 1: Normal execution of contract

The company supplies the machinery in stages and adjusts the entire ₹50,00,000 against invoices raised over the project period ending 31st March 2026. The advance is fully adjusted and never becomes a deposit.

Case 2: Outstanding advance at year end

As on 31st March 2026, only ₹20,00,000 has been adjusted and ₹30,00,000 remains outstanding. This ₹30,00,000 is not a deposit but must be reported in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 3: Refund due to lack of approval

Assume the company is unable to obtain necessary regulatory clearance to execute the contract and becomes liable to refund the advance.

• The ₹50,00,000 becomes refundable due to lack of approval.
• If the company fails to refund the amount within the prescribed time, it will be treated as a deemed deposit.

Case 4: Deemed deposit trigger

Suppose the refund becomes due on 1st October 2025, but the company does not refund it.

• If not refunded within 15 days, i.e., by 16th October 2025, the entire amount becomes a deposit under the Rules.
• From that date, the company must comply with all deposit-related provisions under the Companies (Acceptance of Deposits) Rules, 2014.

 Key takeaway: Advances for long-term capital goods projects are generally non-deposits, but can become deemed deposits if refund arises due to lack of approval and is not made within 15 days.

17. ADVANCES RECEIVED TOWARDS WARRANTY OR MAINTENANCE CONTRACTS FOR FUTURE SERVICES

 Question: Whether advances received towards warranty or maintenance contracts for future services are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xii)(e) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of or for the purposes of the business of the company as an advance towards consideration for providing future services in the form of a warranty or maintenance contract, in accordance with a written agreement or arrangement, is specifically excluded from the definition of “deposit”, subject to the condition that the period for providing such services does not exceed the period prevalent as per common business practice or five years, whichever is less, from the date of acceptance of such advance.

Accordingly, such warranty or maintenance advances are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, provided the time limit and contractual conditions are duly satisfied.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

 Example: ABC Electronics Pvt. Ltd. sells industrial machines and also provides a 3-year warranty and maintenance service contract. On 1st April 2025, the company enters into a contract with a customer and receives ₹3,00,000 as an advance towards a 3-year comprehensive maintenance and warranty package, as per a written agreement.

• The advance is received for future services in the form of warranty/maintenance.
• Since the service period is within 5 years and as per normal business practice, it is covered under Rule 2(1)(c)(xii)(e).
• Therefore, the amount is not treated as a deposit at the time of receipt.

Case 1: Normal performance of contract

The company provides maintenance services each year from 2025 to 2028 and gradually adjusts the ₹3,00,000 against service revenue. The advance is fully adjusted and never becomes a deposit.

Case 2: Outstanding at year end

As on 31st March 2026, only ₹1,00,000 worth of services have been provided, and ₹2,00,000 remains unadjusted. The ₹2,00,000 is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 3: Breach of conditions (exceeding permissible period)

If the contract is structured for 7 years, which exceeds the permitted limit of 5 years or normal business practice:

• The exemption under Rule 2(1)(c)(xii)(e) may not apply fully.
• The amount may be treated as a deposit depending on facts and compliance position.

 Key takeaway: Warranty/maintenance advances are generally not deposits, but they must be within the permitted time limit (5 years or normal business practice) and properly adjusted; otherwise, deposit implications may arise.

18. ADVANCES AS PERMITTED BY A SECTORAL REGULATOR OR UNDER DIRECTIONS OF THE CENTRAL OR STATE GOVERNMENT

 Question: Whether advances received as permitted by a sectoral regulator or under directions of the Central or State Government are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xii)(f) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of or for the purposes of the business of the company as an advance which is permitted by any sectoral regulator or in accordance with directions issued by the Central Government or State Government is specifically excluded from the definition of “deposit”. Accordingly, such advances are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, provided they are received strictly in compliance with the applicable regulatory framework or governmental directions.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

 Example: XYZ Housing Finance Pvt. Ltd. is engaged in a government-regulated housing scheme. As per the directions issued by the State Government housing authority, the company is permitted to collect booking advances from eligible beneficiaries for allocation of subsidized housing units.

On 1st April 2025, the company receives an advance of ₹2,00,000 from Mr. A under this approved scheme.

• The advance is collected strictly in accordance with government directions and sectoral regulator guidelines.
• Therefore, as per Rule 2(1)(c)(xii)(f), the amount is not treated as a deposit at the time of receipt.

Case 1: Normal compliance under scheme

The housing unit is allotted on 31st December 2025, and the advance is adjusted against the final consideration. The amount is fully adjusted and never becomes a deposit.

Case 2: Outstanding at year end

As on 31st March 2026, the allotment process is pending and ₹2,00,000 remains unadjusted. The amount is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 3: Non-compliance with regulatory framework

If the company collects advances outside the permitted scheme or in violation of government/sectoral regulator directions:

• The exemption under Rule 2(1)(c)(xii)(f) will not apply.
• Such receipts may be treated as deposits, triggering deposit compliance requirements.

 Key takeaway: Advances permitted by regulators or government directions are safe from deposit classification only when strictly within the approved framework, but still reportable in DPT-3 if outstanding at year end.

19. ADVANCES RECEIVED TOWARDS SUBSCRIPTION FOR PUBLICATIONS

 Question: Whether advances received towards subscription for publications are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xii)(g) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of or for the purposes of the business of the company as an advance for subscription towards publication, whether in print or electronic form, to be adjusted against the supply or delivery of such publications, is specifically excluded from the definition of “deposit”. Accordingly, such subscription advances are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, provided they are subsequently adjusted against the delivery of publications as per the terms of subscription.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

 Example: ABC Publishing Pvt. Ltd. runs an online journal and monthly magazine subscription service. On 1st April 2025, it receives an advance of ₹5,000 from Mr. X towards a one-year digital magazine subscription.

• The amount is received as advance towards subscription for publications in electronic form.
• As per Rule 2(1)(c)(xii)(g), such subscription advances are not treated as deposits, provided they are adjusted against delivery of publications.

Case 1: Normal subscription delivery

The company delivers monthly digital magazines from April 2025 to March 2026 and adjusts the entire ₹5,000 against subscription revenue. The amount is fully adjusted and never becomes a deposit.

Case 2: Subscription outstanding at year end

As on 31st March 2026, the subscription is still ongoing and ₹2,000 worth of services remain unadjusted. The unadjusted amount is not a deposit, but must be disclosed in Para 15 of Form DPT-3 as a non-deposit receipt.

Case 3: Non-delivery of publications

If the company fails to deliver publications due to cessation of operations or inability to provide the service:

• The advance becomes refundable to the subscriber.
• If not refunded within the prescribed time, it may get classified as a deposit depending on facts and applicable rules.

 Key takeaway: Subscription advances for publications are not deposits when linked to actual delivery of publications, but must be reported in DPT-3 if outstanding at year end.

20. UNSECURED LOANS BY PROMOTERS DUE TO LOAN CONDITIONS

 Question: Whether unsecured loans brought in by promoters in pursuance of stipulation of lending financial institutions or banks are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xiii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount brought in by the promoters of the company by way of unsecured loan is specifically excluded from the definition of “deposit”, provided it is received in pursuance of a stipulation imposed by a lending financial institution or bank requiring promoters to contribute such finance.

This exemption is subject to the following conditions:

1. The loan is brought in pursuant to the stipulation imposed by the lending institution or bank on the promoters to contribute such finance;

2. The loan is provided by the promoters themselves or by their relatives, or by both; and

3. The exemption is available only till the loans of the financial institution or bank are repaid, and not thereafter.

Accordingly, such promoter loans are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, so long as the above conditions continue to be satisfied.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

 Example: A company has taken a term loan of ₹5 crore from a bank. As a condition of sanction, the bank requires promoters to bring in ₹1 crore as additional unsecured funding. The promoters and their relatives accordingly infuse ₹1 crore as unsecured loans in the company. Since this amount is brought in pursuant to a lending institution’s stipulation and provided by promoters/relatives, it qualifies for exclusion from “deposit”.

However, after three years, once the bank loan is fully repaid, the exemption ceases to apply. If the ₹1 crore promoter loan continues to remain in the books after repayment of the bank loan, it will no longer qualify for exclusion and may be treated as a deposit unless repaid or restructured in accordance with the Rules.

Accordingly, during the financial year, if the ₹1 crore remains outstanding, it must be reported in Para 15 of Form DPT-3 as a non-deposit liability.

21. AMOUNTS ACCEPTED BY A NIDHI COMPANY

 Question: Whether amounts accepted by a Nidhi company are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xiv) of the Companies (Acceptance of Deposits) Rules, 2014, any amount accepted by a Nidhi company in accordance with the rules made under section 406 of the Companies Act, 2013 is excluded from the definition of “deposit”, subject to compliance with the prescribed conditions applicable to Nidhi companies.

However, the Explanation to this clause clarifies that certain amounts shall be treated as deposits, including:

1. Any amount received by the company, whether in instalments or otherwise, from a person with a promise or offer to give returns, in cash or in kind, on completion of the specified period or earlier, regardless of how such amount is accounted for; and

2. Any additional contributions made by the company over and above the promised amount under such scheme.

Accordingly, while a Nidhi company may accept deposits in accordance with section 406 and the relevant rules, such amounts will generally be treated as deposits unless they fall within the specific exclusions provided under Rule 2(1)(c).

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3, under the category of receipts of money not considered as deposits (or deposits, as applicable based on classification under the Rules).

The company should carefully distinguish between amounts permitted under Nidhi regulations and those that fall within the definition of “deposit” to ensure correct reporting in Form DPT-3.

 Example: A Nidhi company accepts ₹10,000 per member as recurring deposits under the Nidhi Rules, 2014 with a promised return after 5 years. Since the acceptance is in compliance with section 406 and applicable rules, the amount is not treated as a “deposit” under Rule 2(1)(c). However, if during the year the company also introduces a scheme promising assured returns higher than permitted norms under the Nidhi Rules and collects ₹5,00,000 from members under that scheme, such amounts will be treated as “deposits” because they violate the prescribed conditions. Accordingly, the compliant ₹10,000 deposits will be reported as non-deposit receipts, while the non-compliant ₹5,00,000 will be reported as deposits in Para 15 of Form DPT-3, as applicable.

22. AMOUNTS RECEIVED BY WAY OF SUBSCRIPTION IN RESPECT OF A CHIT UNDER THE CHIT FUNDS ACT, 1982

 Question: Whether amounts received by way of subscription in respect of a chit under the Chit Funds Act, 1982 are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xv) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received by way of subscription in respect of a chit under the Chit Funds Act, 1982 is specifically excluded from the definition of “deposit”. Accordingly, such chit subscription amounts are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014, provided they are received in accordance with the provisions of the Chit Funds Act, 1982.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

23. AMOUNT RECEIVED UNDER A COLLECTIVE INVESTMENT SCHEME (CIS)

 Question: Whether any amount received under a Collective Investment Scheme is treated as a deposit and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xvi) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received by a company under a Collective Investment Scheme (CIS) in compliance with the regulations framed by the Securities and Exchange Board of India (SEBI) is specifically excluded from the definition of “deposit”. Accordingly, amounts raised under a valid and SEBI-compliant Collective Investment Scheme are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

24. AMOUNTS RECEIVED BY A START-UP COMPANY THROUGH CONVERTIBLE NOTES

 Question: Whether amounts received by a start-up company through convertible notes are treated as deposits and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xvii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount of ₹25 lakh or more received by a start-up company by way of a convertible note (convertible into equity shares or repayable within a period not exceeding five years from the date of issue) in a single tranche from a person is specifically excluded from the definition of “deposit”.

A “start-up company” for this purpose means a private company incorporated under the Companies Act, 2013 or the Companies Act, 1956 and recognised as a start-up in accordance with the notifications issued by the Department for Promotion of Industry and Internal Trade (DPIIT).

A “convertible note” means an instrument evidencing receipt of money initially as debt, which is either repayable at the option of the holder or convertible into equity shares of the start-up company upon occurrence of specified events, in accordance with the agreed terms and conditions.

Accordingly, such convertible notes issued by an eligible start-up company, satisfying the prescribed conditions, are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

 Example: A DPIIT-recognised start-up company receives ₹50 lakh in a single tranche from an investor through a convertible note on 1st July 2025, with conversion into equity shares to occur within 5 years. Since the amount exceeds ₹25 lakh and satisfies the prescribed conditions, it is not treated as a deposit. However, if on 31st March 2026 the convertible note remains outstanding (not converted or repaid), the company must report this ₹50 lakh in Para 15 of Form DPT-3 under “non-deposit receipts” along with opening balance, additions, and closing balance details.

25. AMOUNT RECEIVED BY A COMPANY FROM ALTERNATE INVESTMENT FUNDS, VENTURE CAPITAL FUNDS, INVITS, REITS, OR SEBI-REGISTERED MUTUAL FUNDS

 Question: Whether any amount received by a company from Alternate Investment Funds, Venture Capital Funds, InvITs, REITs, or SEBI-registered Mutual Funds is treated as a deposit and required to be reported in Form DPT-3?

 Answer: As per Rule 2(1)(c)(xviii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received by a company from Alternate Investment Funds (AIFs), Domestic Venture Capital Funds, Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), and Mutual Funds registered with the Securities and Exchange Board of India (SEBI) in accordance with the regulations made by it is specifically excluded from the definition of “deposit”. Accordingly, investments or funds received from such SEBI-regulated entities are not treated as deposits under the Companies (Acceptance of Deposits) Rules, 2014.

However, where such amounts remain outstanding as on the end of the financial year, the company is required to disclose the particulars thereof in Para 15 of Form DPT-3 under the category of receipts of money not considered as deposits pursuant to Rule 2(1)(c).

 *****

Disclaimer: Nothing contained in this document is to be construed as a legal opinion or view of either of the author whatsoever and the content is to be used strictly for informational and educational purposes. While due care has been taken in preparing this article, certain mistakes and omissions may creep in. the author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.