Return of Deposits to be Filed by Every Company in E-form DPT-3

The Ministry of Corporate Affairs vide its notification dated 22nd January, 2019 has brought in amendments in the Companies (Acceptance of Deposit) Rules, 2014. The said Rules now mandate every company to file e-form DPT-3 irrespective of whether it has accepted deposits or not.

Applicability
Form DPT-3 filing must be made by all companies other than a Government company. Hence, all private limited company, OPC, limited company or Section 8 Company would be required to file Form DPT-3.

Due Dates
One Time: Companies would be required to file Form DPT-3 one-time on or before the 22nd of April 2019. In the return, the company must provide details of outstanding receipt of money or loan by a company but not considered as deposits from 1st April 2014 up to 22nd January 2019.

Annual: Post the one time compliance, Companies would be required to file Form DPT-3 on or before the 30th day of June, of every year and furnish the information contained therein as on the 31st day of March of that year duly audited by the auditor of the company.

The intention behind this filing requirement could be that MCA wishes to scrutinize at personal level all the transactions of company and self-assess whether the same tantamount to deposits.

Filing of MSME Form 1 with MCA

The Ministry of Corporate Affairs (MCA), on the 22nd of January 2019, notified a requirement for companies that have dues outstanding to MSME enterprises to file the particulars of all current outstanding dues to the concerned Micro and Small Enterprises in Form MSME 1. The filing of such returns comprises of two parts, namely initial returns (MSME-1) and half-yearly return (MSME-2).

Applicability
This compliance is applicable to all companies getting goods or services from micro and small enterprises. Specifically, it is meant for those companies whose payments to the latter haven’t been made for more than forty-five days from the date of acceptance of the goods or services. As per the notification, these companies are required to furnish a half-yearly return to the Ministry of Corporate Affairs stating the particulars of the outstanding amount and the reasons for delay in payment to MSME enterprises.

Procedure
All the companies, to whom this compliance is applicable, are required to identify whether their suppliers are registered under the MSME Act. If they have been, and if payments to them are due for more than 45 days from the date of acceptance of the goods or services, the company would either be required to close the pending dues or file returns of the particulars of the liability, along with the reason for its delay in MSME Form 1. The particulars of liability should include:

  • The total outstanding amount due on the date the form is deployed
  • Name of the supplier.
  • PAN of the supplier.
  • Date on which the liability starts.

Due Dates:
One time: The due date for filing Form MSME 1 shall be within a period of thirty days from the date the form is deployed on the MCA 21 portal. The Form has not been deployed yet.

Annual: Post the one time filing, the MSME Forms shall be required to be filed twice a year as under:
For the period April – September – Due date 31st October
For the period October – March – Due Date 30th April

e-form ACTIVE (INC – 22A) (Active Company Tagging Identities and Verification)

In order to identify active companies and to verify their registered office, the Ministry of Corporate Affairs (MCA) has on 21st February 2019 issued Companies (Incorporation) Amendment Rules, 2019 whereby every company, including a company having license under section 8 of the Indian Companies Act 2013 or under section 25 of the erstwhile Indian Companies Act 1956 and incorporated on or before the 31st December, 2017 is now required to file important details of the company and its registered office in e-form ACTIVE (INC – 22A) on or before 25th April 2019.

Active Company Tagging Identities and Verification is a new concept introduced by MCA vide Companies (Incorporation) Amendment Rules, 2019 which is applicable from 25th February 2019.

Requirements for Filing Form INC 22A:

  • Name of the Company
  • Full Registered Office address of the Company
  • External Photo of the Registered Office, preferably showing the Name Plate
  • Internal Photo of the Registered Office showing at-least one director signing the Form
  • Latitude of the address on Map
  • Longitude of the address on Map
  • Email ID of the Company, which will be verified through an OTP.
  • Names of Directors and their DIN
  • Details of all Statutory Auditor, Cost Auditor, Company Secretary [Name of the Individual/Firm, PAN, Membership No, Firm Registration Number, Period for which appointed]
  • Challan of Form AOC 4 and MGT 7 filed for FY 2017-18

Consequence of non filing of e-form INC–22A:

If a company does not file Form 22A or ACTIVE before 25.04.2019, then the company would be marked as ACTIVE non-compliant. Once a company is marked as ACTIVE non-compliant, it would not be able to file or affect any of the following changes:

  • Changes in authorized capital (Form SH-07)
  • Changes in paid-up capital (Form PAS-03)
  • Changes in Director (Form DIR-12). Cessation would be allowed.
  • Changes in Registered Office (Form INC-22)
  • Amalgamation or Merger (INC-28)

Fees: There is no government fees if it is filed within due date. The e-Form has to be digitally signed by a Chartered Accountant/ Cost Accountant or a Company Secretary in whole-time practice.

Penalty: Penalty for filing after the due date is Rs. 10,000.

Due Date: The due date is 25th April 2019. Kindly complete the fee payment and furnish the details on or before 15th March 2019, for timely submission.

Ineligibility:
Following Companies will not be allowed by Ministry of Corporate Affairs to file this e-form ACTIVE:

  • Companies which have not filed its due Financial Statements in Form AOC-4
  • Companies which have not filled its Annual Returns in Form MGT-7
  • A company who’s any of the director/s has not filled DIR 3 KYC form or is disqualified under section 164 of the Companies Act, 2013.

Hence, it is essential that the Companies have filed its Annual Returns till FY 2017- 2018 and the status of all its directors is ‘Active’ on MCA Portal by filing Form DIR KYC.

Exemptions: If a company is struck off or under the process of striking-off or liquidation, the Form ACTIVE need not be filed.

Submitting Tax Saving Proofs to Employer

Why Employers Ask for Tax Saving Investment Proofs?
Employers are responsible to deduct income tax (TDS – Tax deduction at source) from salary paid to its employees and deposit the same to income tax department. But income tax is complicated and the final tax depends on the tax saving investments a person makes or if the person lives on rent or if he has a house. So to compute your taxes correctly your employer asks for a declaration at the start of financial year (in April). The TDS is deducted based on this declaration.

What if you do not Submit the Proofs?
In case you do not submit the proofs, employer would not be able to give you tax benefit on your tax saving investments. This would lead to higher deduction of taxes.

What investment proofs to be Submitted
Indian income tax laws are complicated and have multiple exemptions and investment options. Below is the list of documents that needs to be submitted to your employer to get relevant tax deductions.

House Rent Allowance (HRA) u/s 10(13A)
Following documents need to be submitted to claim tax benefit on HRA:

  • Rent receipt for starting and the end month and of intermediate month in case there has been change in rent or rented accommodation. So you need to submit rent receipt for April and Dec/Jan if there is no rent change.
  • The rent receipt must have One rupee revenue stamp on it (ideally a revenue stamp is required for receipts if the rent is paid by cash and is over Rs.5,000 but most employers still ask for it).
  • No rent receipt is required if the monthly rent paid is below Rs.3,000
  • Copy of rent agreement.
  • If the annual rent paid exceeds Rs 1 lakh you also need to give PAN number of the landlord.

Home Loan Interest u/s 24

  • Copy of Provisional Interest certification from Bank/Financial Institution stating the amount of principle and interest separately.
  • The certificate should also have the loan sanction date & PAN Number of Bank/financial institution
  • Copy of Possession Certificate
  • Copy of Sale Deed (In case possession letter in not available)
  • Copy of Lease deed, in case of let out property
  • In case of Joint Home Loan, self-declaration of the ownership proportion needs to be furnished

Medical Insurance Premium u/s 80D

  • Copy of Insurance Premium receipt paid
  • Copy of receipt for Preventive Health Checkup for self, spouse, dependent children or parents

Interest on Repayment of Education Loan u/s 80E

  • Copy of Provisional Interest certification from Bank/Financial Institution showing the interest and principle separately.

Rajiv Gandhi Equity Saving Scheme (RGESS) u/s 80CCG

  • Demat Account Statement
  • Self declaration stating RGESS enabled investments

Handicapped dependent u/s 80DD

  • Amount paid or deposited under any scheme framed in this behalf by the LIC or UTI or any other insurer and approved by the Board for the maintenance of the handicapped dependent
  • Physical disability certificate from a physician, a surgeon, or a psychiatrist, as the case may be, working in a Govt. hospital. The certificate should contain the employee’s name and percentage of Disability clearly.
  • Form 10-IA.

Medical Treatment Expenses u/s 80DDB

  • Medical Bills / expenditure incurred by way of medical treatment for a specified disease along with a certificate from a hospital in the prescribed form.
  • Form 10-I

National Pension Scheme u/s 80CCD(1B)

  • Photo copy of deposit receipt or account statement of NPS (Read: Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?)

Section 80C Deductions:
The table below gives the list of documents to be submitted to get tax benefit u/s 80C

S.No. Investment Type Documents as Investment Proof
1 Life Insurance Premium Copy of Premium Receipt. Late payment fees will not be included as premium paid

For the premium falling due after submission deadline, attach previous year’s receipt with declaration

2 Public Provident Fund (PPF) Copy of passbook/statement along with the cover page showing investor’s name OR

Copy of the deposit challan duly acknowledged by the Bank

3 Senior Citizens’ Savings Scheme Copy of passbook/statement along with the cover page showing investor’s name OR

Copy of the deposit challan duly acknowledged by the Bank

4 NSC Copy of the NSC Passbook purchased during the financial year

For accrued Interest on NSC – Copy of Certificates/Passbook to be enclosed with date of purchase and the amount

5 ELSS (Tax Saving Mutual Fund) Copy of Account Statement
6 Children’s Tuition Fees Copy of receipts for Tuition Fees and Exam Fees (excluding Donations & Development fees, Bus / Transportation charges, Text Books, Private Tuitions or Tutorial Fees) paid to any University/College/School or Other Educational Institution in India during the current year for a maximum of 2 children.
7 Sukanya Samriddhi Yojana Copy of passbook/statement along with the cover page showing investor’s name OR

Copy of the deposit challan duly acknowledged by the Bank

8 Pension Plan from Insurance Companies Copy of Premium receipt

For premium falling due after Jan ’16. Please attach previous year’s receipt with declaration

9 Post Office Tax Saving Term Deposit Copy of deposit receipt
10 Tax Saving Bank Fixed Deposits Copy of Deposit Receipt OR Account Statement

Certificate of Commencement of Business

The Companies (Amendment) Ordinance 2018 has reintroduced the concept of Certificate of Commencement of Business with effect from 2 November 2018. Under the new Ordinance, no company will be entitled to commence its operations or exercise any borrowing powers unless it has filed within 180 days from its Incorporation a “declaration” stating:

  • That the Subscribers to the Memorandum of the company have paid the value of shares agreed to be taken;
  • That the Company has filed a verification of its registered office address with the Registrar of Companies.

Procedure:

  • The declaration shall be in Form No INC 20A and mention that all the subscribers to the memorandum have remitted the total value of the shares agreed to be taken by them in the Companies Bank Account.
    Note: One has to attach the Bank Account statement of Company having all credit entries for receipt of subscription money received from all subscribers to the Memorandum. If the Bank Statement is not available, then valid payment proof like NEFT/IMPS receipt shall be accepted.
  • The Form shall be filed with the Registrar of Companies within 180 days from the date of Incorporation and shall be certified by a Company Secretary or Chartered Accountant, Cost Accountant, in practice.
  • In case the Company is pursuing such objects which require approval from any sectoral regulators such as Reserve Bank of India, Securities & Exchange Board of India etc, then such approval should also be obtained at the time of making the declaration.

Consequences of non-compliance:

If the Certificate of Commencement of Business is not filed within the stipulated time, then:

  • Company cannot commence its business and cannot borrow money
  • Penalties will be imposed by the concerned Registrar for non-compliance
  • Registrar may initiate action for the removal of the name of Company

Penal Provisions:

If any default is made in complying with the above, the company shall be liable to a penalty which may extend to five thousand rupees and every officer who is in default shall be punishable with fine which may extend to one thousand rupees for every day during which the default continues.

Removal of company name from Register of Companies:

Where Certificate of Commencement of Business has not been filed with the Registrar within a period of 180 days from the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.