DSC stands for Digital Signature Certificate and it allows users to securely sign documents and protect themselves from fraud or identity theft. Hence, in today’s era where a lot of documentation takes place in electronic format, it is in the best interest of individuals & businesses to apply for digital signatures as it ensures a high level of security and confidentiality.
What is Digital Signature Certificate (DSC)?
Digital Signature Certificate (DSC) is an electronic form of signature stored in a USB drive and helps to authenticate the identity of the sender of a message or the signer of the document. It contains information such as user name, PIN code, E-mail address, date of issuance of the certificate, etc. Moreover, it ensures:
- Originality of document
- Easy transportability
- Confirmation of Identity of sender
- High-level security for online transactions by ensuring privacy.
Types of DSC
As an applicant, before you proceed towards DSC registration, it is important to know about the types of DSCs. The purpose of obtaining the Digital Signature Certificate defines the kind of DSC one must apply for depending on the need. The Certifying Authority (CA) issues the signatures that fall into the following three categories:
- Class 1 Certificates: Certifying Authorities issue Class 1 certificate for both business personnel and private individuals’ use. It helps to confirm that the user’s name and email contact details lie within the database of the certifying authority. However, class 1 DSC is not used to validate any documents.
- Class 2 Certificates: The Registrar of Companies accepts Class 2 DSC for submission, including income tax returns, MCA forms, audit reports, etc. The identity of a person is checked against a reliable, previously validated database in Class 2 DSC. It is made available for both corporate and personal use.
On November 26, 2020, the Controller of Certifying Authority (CCA) released instructions for the CAs regarding the issuance of these certificates. The rules include a clause stating that Class 2 DSC would no longer be used as of January 1, 2021.
As a result, from 1st January 2021, class 3 certificates will be issued in place of class 2 and class 1 certificates.
- Class 3 Certificates: Class 3 certificates are the most secure form of the certificate. Hence, it is used where the security and safety of the data are the most essential factors.
The applicant can process the DSC via Aadhar or PAN based mode. You can visit the CCA website and see a list of authorised CA’s which can issue the signature.
Validity of the signature
Usually the signature is valid for 2 years. Albeit, the DSC can be renewed by submitting an application to the authority.
Uses of the signature
The use of a digital signature is the same as that of a handwritten signature. However, DSC uses digital keys to authenticate a person. The use of digital signatures is increasing because unlike a handwritten signature, it is difficult to fake a digital signature.
Below are the foremost uses of DSC:
- Income Tax Return e-filing
- MCA e-filing
- GST Application filing
- e-procurement
- e-bidding
- e-auction
- e-tendering
- Patent and trademark e-filing
- To sign and validate Word, Excel, and PDF document formats & more.
FAQs
Legally, valid Digital Signature Certificates are issued only through a Controller of Certifying Authorities (CCA). Hence, you can visit the CCA website to see the list of CA’s who can issue the signature. Alternatively, Registration Authority like Quicko can also help you with the DSC process through the Certifying Authority.
A Digital Signature Certificate authenticates your identity electronically. Therefore, it 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. Further, you can use certificates to 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.
While applying for the signature, the basic requirements are identity proof and address proof.
Hey @HarishMehta
Yes, DSC is issued for a limited time period, i.e. for 1 year or 2 years . After the completion of the validity of the DSC, one must obtain a renewed DSC for which an application has to be made.
Hope this helps!
Hi, in IT site says to register the Digital Signature. Is it for individuals or for CAs, or for both?
tnks
Hey @Panneer_Selvam , only individuals and entities who are required to get their accounts audited have to file their income tax return compulsorily using a digital signature. You can read more about it from the article shared below:
Hi, I think I was not clear. I have a DSC token as an individual. Shall I have to register the DSC in the new income tax site?
Hey @Panneer_Selvam , yes, you will have to register your DSC on the new IT portal.