A Digital signature is a physical signature in an electronic format. Digital signature is used in India for a secured online transactions such as Online Income Tax Filing , LLP Registration , Filing Annual Return , e-tenders etc., Digital signature track the identity of the sender of an electronic document in the Internet. There are three types of Digital signatures Class I , Class II and Class III.
Class I – This type of digital signature is used for secure email communication.
Class III – is used for e- tendering and e-auctions.
Digital Signature Certificate is stored in a USB drive and can be accessed through acomputer to sign documents electronically. With E-Return filing becoming mandatory for Income Tax Assesses with an income of over Rs.5 lakhs per annum, the requirement and need for Digital Signatures has increased. A Digital Signature certificate is required to file GST Return online filing for private Limited companies.