Digital signature can be both (open and encrypted) electronic form of signature that can be used to authenticate the signatory of a document.
Generally in legal compliance and online filing agenda the digital signature is used as a proof of identity and authentication process. Mainly, this type of signature is mostly used for income tax e-filing and gst return filing.
In the context of ITR, it is mandatory for an individual, HUF, firm, LLP (if their accounts are required to be audited under the provisions of Section 44AB), political parties and companies to file the ITR using the DSC with appropriate class (1,2&3).
Let’s read more about digital signatures in detail…!
Read More: GST Return - What Is It? How To File The Returns
Digital Signature Explained
To confirm user’s name and email contact, e-filing verification, gst filing, online participation/bidding in e-auctions and online tenders there asymmetric cryptography i.e. digital signature is used.
Digital signature is not just only the electronic form of signature but is a certificate that serves to authenticate documents digitally. It helps tax payer in e-verification of ITR using digital signature because of its safe, fast, and reliable acceptance of features.
Features of Digital Signature Certificate (DSC)
The mainstream characteristics of digital signature that makes it more awesome nowadays is its level of security maintenance and acceptance available. However there are many as follow -
- All signatures are encrypted
- Accepted and enforceable in nearly any industry
- Signature is time-stamped when a document is signed
- Because of high-security it’s almost hard to crack
The Benefit and Roles of Digital Signature in ITR Filing
Due to government mandates, it’s important for willing individual to file their income tax online using digital signature. Using next-level digitally signed certificates helps firms and individuals to leverage the following advantages.
- Save Cost and Time: Digital signature certificate reduces your time (in-prior) to cut your holidays or nostalgia events along with reducing minimalist expenses on ink, paper, printing, scanning, shipping/delivery, etc.
- Increase workflow efficiency: The prime reason DSC is used in most of the fields is due to the rapid and fast process of workflow. Taxpayers don’t have to wait for a long time - just upload and do.
- Better customer experience: It helps in boosting customer experience and provide convenience of signing important or on-the-go documents easily and fastly.
- Utmost uncrackable security: The digital signature covered with solid A+ level encryption method. Thus hard to surge or retain the data of that someone.
- Legal and future validity: Digital signatures provide authenticity and ensure that the signature is verified and also have future validity, you need to renew it when expired.
- Environmental benefits: Acknowledging DSC rule over internet and digital, it is also eco-friendly. It leads to saving wood and paper.
- Prior to business efficiency: Enterprise whether small or big with quicker contract turnaround time, and reduce the workflow time there it proved itself better.
Also Read: Document Required for Online Digital Signature Certificate
Apply Online for Class 1,2&3 DSC
Looking for applying a digital signature online? Take help of TaxWink virtual consultancy service and get a digital signature certificate online in less than a week. Contact us for more information.
