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With the rapid digitalization of regulatory, financial, and corporate compliance frameworks in India, the adoption of secure electronic authentication mechanisms has become essential.
DSCs are essential for organizations, professionals, and taxpayers to comply with IT, GST, MCA, ROC, and other regulations. Learn more on what, why & when you need
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Digital Signature Certificates (DSC) are required for authorized online submissions on government platforms like the Income Tax e-Filing portal, Goods and Services Tax (GST) portal, Ministry of Corporate Affairs (MCA) portal, Directorate General of Foreign Trade (DGFT), and various e-procurement systems.
In the compliance-driven environment, businesses, professionals, and taxpayers need Digital Signatures to ensure regulatory compliance, protect sensitive data, expedite documentation, and improve operational efficiency. India's shift toward e-governance and paperless compliance has increased Digital Signature usage across sectors.
The 2015 Gazette Notification - GSR 61(E) incorporated Aadhaar eSign into the Information Technology (IT) Act as a valid electronic signature.
While the government has plans to do a complete transition to "Aadhaar eSign" in future, including but not limited to MCA / ROC compliance etc., this document covers only DSC.
What is Aadhaar eSign? A cloud-enabled service / framework that uses a one-time password (OTP) or biometric authentication linked to an Aadhaar number to sign documents in a quick, easy, and practical manner, with an expirable token, no physical token to purchase, works on your mobile, and is completely free to use.
Department of Finance department already uses one form of aadhaar based OTP to e-verify Income Tax Returns (ITR), GST Returns (GSTR) etc.
Below are the some of the certifying authorities in India
Below are the benefits and limitations of Digital Signature Certificate
| S.No | Benefits | Limitations |
|---|---|---|
| 1 | Provides high level of security through encryption technology | Involves initial cost for obtaining and renewing DSC. Costs from Rs. 2200/- every 2 years |
| 2 | Legally recognized under the Information Technology Act, 2000 | Requires basic technical knowledge for installation and usage |
| 3 | Verifies identity of the Signer and prevents impersonation | Risk of misuse if USB token or password is lost or shared |
| 4 | Ensure data integrity by detecting any alteration after signing | DSC has limited validity and requires periodic renewal |
| 5 | Saves time by enabling instant online signing and submission | Possible compatibility issues with certain browsers or systems |
| 6 | Reduces paperwork, printing, courier, and storage costs | May require software updates and driver installations |
| 7 | Promotes paperless and eco-friendly compliance | Dependence on system and internet availability |
| 8 | Enhance credibility and trust in electronic transactions | Initial setup process may be time consuming for new users |
Digital signature certificates are classified based on their usage and level of security. The types of digital signature certificates are as follows:
Proper handling of DSC is important to prevent misuse and maintain security.
Contact EZTax for a quick and seamless DSC services with complete assistance, secure processing, and expert support. Generally, takes an hour to get DSC issued.
Apply for your Digital Signature Certificate here @ Buy Digital Signature Certificate (DSC) with Sign - Plan & Pricing
| S.No | Description | Aadhaar e-sign | DSC |
| 1 | Definition | Cloud-based electronic signature using Aadhaar - linked authentication (OTP on mobile or biometrics). | It is issued by a Certifying Authority (CA) to authenticate identity digitally and encrypt/sign documents. |
| 2 | Legal Validity | Legally valid under IT Act, 2000, and GSR 61(E) 2015 Gazette Notification; equivalent to DSC for electronic signatures. | Legally valid under IT Act, 2000 |
| 3 | Ease of Use | Very easy as only OTP is required | Requires technical knowledge as it requires installation, token management, driver’s installation etc |
| 4 | Security Level | High as it relies on Aadhaar eco system | Very High as it has cryptography |
| 5 | Authentication Method | OTP or biometric authentication linked to Aadhaar | Uses asymmetric cryptography. Private key stored securely in USB token or software |
| 6 | Cost | Free | Rs 2000 - Rs 5000 |
| 7 | Hardware / Software Requirement | Not required | Requires USB token and software installation |
Below are the areas where Aadhaar e-Sign is already being used
At present, ROC filings with the Ministry of Corporate Affairs (MCA) mandate the use of Digital Signature Certificates (DSC). With ongoing digital transformation initiatives, there is an expectation that DSC requirements may be streamlined in the future.
Additionally, DSC continues to be mandatory for specific Income-tax compliances, including filings by companies and filings by firms/LLPs that are subject to audit requirements.
EZTax has consistently advocated for Aadhaar-based authentication as a future-ready alternative to DSC, aligning with the government’s broader vision of simplifying compliance and improving ease of doing business.
Technical compatibility issues, browser settings, token drivers, and system configurations often lead to eSigner failure errors while using DSC. Recognizing this recurring concern among taxpayers and professionals, EZTax has created a troubleshooting resource available @ How to solve 'emSigner failure' while using DSC?
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.