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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 II – is used for Company or LLP Incorporation , filing Income Tax Returns , Filing Annual Returns and other forms with the Ministry of corporate affaird and Income Tax Department.
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.
Frequently Asked Questions
What is a Digital Signature Certificate (DSC)?
Digital Signature Certificate (DSC) is the electronic format of physical or paper certificate like a driving license, passport etc. Certificates serve as proof of identity of an individual or organization for a certain purpose on online/ computer. Digital Signature Certificate (DSC) Certificate can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally manually.
Where can i use Digital Signature Certificate (DSC)?
For sending and receiving digitally signed and encrypted emails/ documents. For carrying out secure web-based transactions. In eTendering, eProcurement, for Registrar of Companies e-filing, Income Tax for e-filing income tax returns and also in many other applications. For signing documents like MS Word, MS Excel and PDFs.
How does a Digital Signature Certificate work?
A Digital Signature Certificate (DSC) explicitly associates the identity of an individual/device with a two keys – public and private keys. The certificate contains information about a user’s identity (for example, their name, pin code, country, email address, the date the certificate was issued and the name of the CA. These keys will not work in the absence of the other. They are used by browsers and servers to encrypt and decrypt information regarding the identity of the certificate user. The private key is stored on the user’s computer hard disk or on an external device such as a USB token. The user retains control of the private key; it can only be used with the issued password. The public key is disseminated with the encrypted information. The authentication process fails if either one of these keys in not available or do not match. This means that the encrypted data cannot be decrypted and therefore, is inaccessible to unauthorized parties.
What type of Digital Signature is required for e-tendering, e-procurement and trademark / patent filing?
Class 3 Company/ Organization User certificate is required for e-Tendering, e-Procurement, Trademark/ Patent filing. Class 3 is the highest type of Digital Signature Certificate. It can be issued for 1 years or 2 years. After the valid period, the user needs to renew class 3 digital signature certificates.
Why do I need a Digital Signature Certificate (DSC)?
A Digital Signature Certificate (DSC) Certificate authenticates your identity electronically. DSC also provides you with a high level of security for your online transactions by ensuring absolute privacy of the information exchanged using a Digital Signature Certificate (DSC). You can use certificates to sign / encrypt information such that only the intended recipient can read it. You can digitally sign information to assure the recipient that it has not been changed in transit, and also verify your identity as the sender of the message.
Where can I purchase a Digital Signature Certificate (DSC)?
Legally valid Digital Signature Certificate (DSC) Certificates are issued only through a Controller of Certifying Authorities (CCA), Govt. of India, licensed Registration Authorities (RA), such as e-Solutions. e-Solutions, a Registration Authorities (RA) licensed by (n)Code Solutions-CA, offers secure Digital Signature Certificate (DSC)s through various options tailored to suit individual as well as organizational needs.
Are Digital Signature Certificates (DSC) legally valid in India?
Yes, as per Information Technology Act 2000 in India, Digital Signature Certificates (DSC) are legally valid in India. Digital Signature Certificate (DSC) are issued by licensed Certifying Authorities under the Ministry of Information Technology, Government of India as per the Information Technology Act.
What type of Digital Signature Certificate is required for income tax filing, ROC and MCA filing?
Class 2 Digital Signature Certificate is required for Income Tax filing, ROC and MCA filing. Class 2 Digital Signature Certificate can be issued for 1 year or 2 years. After the valid period, the user needs to renew class 2 digital signature certificates. Class 2 Digital Signature certificate can be issued to individual/ organization.