What is a Digital Signature?

Digital signatures are a type of electronic signature, which can be used to authenticate the identity of a person in an electronic transcript or document. This ensures that the content sent is original and unchanged. These signatures can be stored easily with data encryption to ensure that it cannot be duplicated/imitated.

What is a Digital Signature Certificate?

This is an electronic document that is issued by the DSC issuing authority (certifying authority) and authenticates the validity of the digital signature of a person. When presented, it proves the identity of the person, so that he/she may access electronic information or sign documents. So, while the digital signature is a method, the DSC is an electronic record.

Why do I require a DSC?

DSCs secure your online activity and correspondence. For instance, certain e-forms and documents would have to be signed digitally to validate its authenticity. DSCs can also be used to secure information and assures the privacy of the information exchanged.

Who can issue digital signatures?

Through the Information Technology Act, 2000, certain Certified Authorities have been granted the license to issue Class 2 and Class 3 DSCs. The lists of authorized and licensed Certifying Authorities mentioned in the Government’s website are:

• National Informatics Center
• IDRBT Certifying Authority
• SafeScrypt CA Services, Sify Communications Ltd
• (n) Code Solutions CA
• Tata Consultancy Services
• CDAC
• Capricon
• NDSL
• e-Mudhra

Digital Signature Certificates in India are governed by the Ministry of Information and Technology.

Where can I use my DSC?

DSCs can be an important aspect of creating a paperless office and minimizing physical documentation. You can use your DSC for the following purposes:

• To sign documents created in MS Office or PDF formats this could include official letters, contracts, etc.
• To signing e-forms related to MCA, RoC and Income Tax Filings
• For the purpose of e-tendering and e-procurement
• For securing web transactions and correspondence
• Can be used to sign encrypted emails.

What are the different Classes of DSCs?

Under the guidelines of the IT Act and the rules issued by the Controller of Certifying Authorities, a Certifying Authority can issue 3 classes of certificates. Each class of DSC is associated with a specific purpose and has a different level of security authentication.

Class 1: This is issued to both businesses and private individuals. The DSC is used to confirm the information of a person, such as name, email and contact details, so that it is in-line with the details in the certifying authority’s database. This provides a basic level of identity assurance and can be used in places where risks of any data compromises are not very significant, such as the signing of letters, etc.

Class 2: This class of certificate is issued to the authorized signatories of a business, like the directors, for the purpose of e-filing with the MCA / ROC or income tax department. It can also be issued to sole proprietors for the purpose of signing e-tax returns, etc. Company secretaries and chartered accountants can also use this class of DSC for filing company related e-forms. The level of security is slightly higher here because it used for transactions that involve moderate monetary value and risk of fraud.

Class 3: These certificates can be issued to both individuals and organizations, and are primarily used for the purpose of participating in online tenders and auctions. While class 1 and class 2 DSCs can be issued through an online process, class 3 DSCs are issued only upon the physical presence of the person before the certifying authority. This is because the class 3 DSC is used in high-security situations, which either involve high-value or high-risk transactions, or both.

What type of DSC is required for imports and exports?

Class 3 DGFT Digital Signature Certificate is required to be procured by importers and exporters.

What class of DSC is required for e-filing with the RoC / MCA and Income Tax?

Class 2 DSC registered with the respective department will be required.

Can I have more than one DSC?

A person can have more than one DSC. However, to use the same, the DSC must be registered with the appropriate authority.

For how long is a DSC valid?

Digital Signature certificates can be issued with a validity of either 1 year or 2 years, and can easily be renewed. In case your DSC has expired, you can re-register your new DSC with the authority with which you want to use it.