Form No. 3 – Frequently Asked Questions (FAQs)

Form no. 3 – Frequently Asked Questions (FAQs)

Certificate of an Accountant under rule 7 (Zero Coupon Bonds)

1. What is Form no. 3?

Form no. 3 is a certificate prescribed under rule 7 to certify utilisation of funds raised through notified Zero Coupon Bonds.

2. Who is required to file Form no. 3?

Every issuer of a notified Zero Coupon Bond, namely:

• Infrastructure capital company
• Infrastructure capital fund
• Infrastructure debt fund
• Public sector company

3. Is filing of Form no. 3 mandatory?

Yes. It is mandatory for each relevant tax year.

4. Who must certify Form no. 3?

An accountant as defined under section 515(3)(b) of the Act.

5. When should Form no. 3 be filed?

Within two months from the end of the relevant tax year.

6. How many times is Form no. 3 required to be filed?

It is year-specific and must be filed for each applicable tax year.

7. What information is reported in Form no. 3?

Issuer details, bond notification details, investments made, and year-wise utilisation.

8. Are there special requirements for Infrastructure Debt Funds?

Yes. Certification of maintenance of a sinking fund invested in Government securities.

9. Can Form no. 3 be filed offline?

No. It must be filed electronically.

10. Can Form no. 3 be revised after filing?

Revision is generally not permitted unless enabled by the system.

11. What documents should be maintained?

Bank statements, investment records, project progress reports, and sinking fund records.

12. What are the consequences of non-filing or incorrect filing?

Withdrawal of notification, loss of tax benefits, and possible statutory action.

13. Why is Form no. 3 important?

It ensures annual monitoring, compliance, and transparency in utilisation of ZCB proceeds.

Zero Coupon Bonds compliance certificate must be filed electronically each tax year by eligible issuers. Form No. 3 is the prescribed accountant's certificate under rule 7 for certifying utilisation of funds raised through notified Zero Coupon Bonds. It is mandatory for each relevant tax year and applies to every issuer of a notified Zero Coupon Bond, including infrastructure capital companies, infrastructure capital funds, infrastructure debt funds, and public sector companies. The certificate must be filed electronically within two months from the end of the relevant tax year and is year-specific, with revision permitted only if the system enables it.