DSC (Digital Signature Certificate)

What is DSC?

A DSC is an electronic form of a signature used to validate one’s identity over some document, may be sender or signer. This way the data transmitted electronically is safe and not tampered with even while it is sent. DSCs are issued by CAs and legally permissible for many types of online transactions and filaments .

Types of Digital Signature Certificates

There are three types of DSCs, used for different purposes:

1. Class 1 DSC: This is issued to individuals and secures email communication. It is used to verify the email ID being that of the user.
2. Class 2 DSC: It is issued to both companies and individuals for establishing authenticity of a document. Filing income tax returns, company registration are some such activities.
3. Class 3 DSC: This is the highest class of Digital Signature Certificate for e-commerce applications, online auctions, and even taking part in online tenders. The applicant has to appear in person before the Certifying Authority.

Benefits of Digital Signature Certificates

• Enhanced Security: DSCs have the highest degree of security with respect to any online transaction where information is transmitted as it ensures that all information shared would be safe and secure.
• Authentication: DSC authenticates the identity of the person as well as that of the other entities, thereby easy verification of document genuineness.
• Legal Validity: In India, DSC is legally recognized, and it is similar to that of a signatory under the information technology act 2000.
• Time and Cost-Effective: Digital signatures eliminate paper; therefore, it saves time and reduces costs incurred by the paper-based process.
• Environment-Friendly: DSC minimizes the use of paper documents; hence, it helps conserve the environment.

How to Get a Digital Signature Certificate

Getting a DSC is quite easy. Here are a few steps to get the DSC:

• Choose the Certifying Authority (CA): Choose an authenticated CA to issue your DSC.
• Filing the Application Form: The applicants have to complete the application form provided on the CA’s website.
• Submission of Supporting Documents: In this regard, they need to submit documents relating to identity proofs, address proofs, and photos.
• Verification Procedure: In verification procedure cases, it would be either physically or online.

After successful verification procedure, the applicant DSC is provided with it along with downloading through a USB token.

Documents to Apply for DSC

• Identity Proof: PAN card, Aadhaar card, passport, or any other government-issued ID.
• Address Proof: Utility bills, bank statements, or any other document disclosing the applicant’s address.
• Photographs: Recent passport size photos of the applicant.
• Application Form: Application form duly filled and signed by the applicant which the Certifying Authority issues.

Using Digital Signature Certificates

DSCs are being used extensively in numerous online applications and operations, such as:

1. E-Filing of Income Tax Returns: DSCs are mandatorily used for e-filing of income tax returns by the companies and individuals who need audit.
2. Company Registration: Signing e-forms submitted to the Ministry of Corporate Affairs (MCA).
3. E-Tendering and Procurement: Secure and authentic bidding in online tenders and procurements.
4. Document Signing: Ensures the integrity and authenticity of signed electronic documents, contracts, and agreements.
5. Banking and Finance: Used for secure online banking transactions and loan applications.

Renewal and Revocation of DSC

DSCs are normally valid for one or two years and have to be renewed once they expire. Renewal of DSC is done by submitting the application and verification documents.

DSC can be cancelled if details of the holder are changed, the DSC is compromised, or the holder no longer needs it. This cancellation is carried out through the same Certifying Authority that issued the DSC.