Deposits and Loans From Shareholders: Section 73 and DPT-3 Risk Checklist
Money received by a company is not automatically share capital or a simple loan. Deposit rules can apply depending on source, terms, purpose and exemptions. DPT-3 should start with a receipt-wise classification exercise.
For broader context, see the NRI, RBI and International Transactions Hub.
Section 73 base
Section 73 deals with prohibition on acceptance of deposits from public and sets the statutory frame for acceptance of deposits subject to the Act and rules.
For the connected rule, example or next step, see Foreign Loan vs ECB: Startup Funding Risk Checklist.
Receipt classification table
| Receipt type | Control question |
|---|---|
| Share application money | Was allotment completed within applicable timeline and records? |
| Director loan | Is lender's source declaration and eligibility documented? |
| Shareholder loan | Does it fall within permitted/exempted category or deposit framework? |
| Customer advance | Is it linked to supply of goods/services and adjusted properly? |
| Inter-corporate loan | Check Sections 179/186 and deposit-rule treatment. |
For the connected rule, example or next step, see Unclaimed Bank Deposits: Family Search and Evidence Checklist.
DPT-3 working file
- Receipt-wise ledger of loans/advances/deposits.
- Party relationship and source classification.
- Agreement/terms and repayment date.
- Auditor/CS classification note where sensitive.
- Filed form, SRN and challan.
Finin2min warning
Official sources used
This article is intentionally source-limited to official MCA / India Code material. Verify final filing positions with the latest Act, Rules, MCA forms and portal advisories before publishing.
- India Code: Companies Act, 2013 — Section 73 Prohibition on Acceptance of Deposits from Public
- India Code: Companies Act, 2013 — Section 186 Loan and Investment by Company
- India Code: Companies Act, 2013 official PDF
FAQs
Section 73 deals with prohibition on acceptance of deposits from public and related conditions.
Not always, but they must be classified carefully under Act/rules and exemptions.
It requires correct receipt classification and can reveal inconsistent loan/deposit treatment.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- Companies Act & MCA
- Official starting point
- www.mca.gov.in