Digital Signature Certificate (DSC)

Introduction to DSC (Digital Signature Certificate)

What is DSC (Digital Signature Certificate) 

A Digital Signature Certificate (DSC) serves as an electronic and legally recognized substitute for the conventional wet signature. It is used for online transactions, accessing services or information on the internet, and digitally signing documents. Additionally, individuals can employ a digital signature certificate for sending encrypted emails. This certificate verifies the identity of the signer, which is essential for creating a digital signature. Notably, a digital signature certificate is a highly secure file that contains the personal information of the signer.

Advantages of DSC (Digital Signature Certificate)

  • Authentication: useful for verifying the individual holder's personal information details when doing online transactions.
  • Reduced Cost and Time: You can sign PDF files digitally and submit them considerably faster than physically signing hard copy documents and scanning them to distribute via email. It is not necessary for a DSC holder to be present in person to conduct or approve transactions.
  • Data integrity: Government bodies frequently request these certificates to cross-check and validate the business transaction. Digitally signed documents cannot be changed or updated after they are signed, making the data safe and secure.
  • Document authenticity: Digital signatures provide the recipient with the assurance that the signer is who they say they are. They don't have to worry about the documents being falsified in order to act based on them.

Important of DSC (Digital Signature Certificate)

A class 3 digital signature certificate is necessary for GST, income tax, e-procurement, EPFO filing, tender submissions, and much more. The entire registration process for the purchase of a digital signature certificate is conducted online on the eMudhra website. eMudhra deploys multi-factor authentication to verify the user identity in less than 5 minutes. After verification, the digital signature certificate is made available for download within 30 minutes.

Type Of DSC (Digital Signature Certificate)

 let's delve into the different types of DSCs available:

Signature DSC: Sign Certificates are a useful tool for document signing. For the purpose of submitting income tax returns, GST returns, MCA online forms, and other web-based services, it can be attached to PDF files or documents. It authenticates the user's identity and verifies the document's integrity. It guarantees the recipient that the document and the data mentioned have not been tampered with.

Encryption DSC: To encrypt files, papers, or other private and sensitive data, one can utilise an encryption certificate. DSC encryption is intended for private data and documents. It facilitates the encryption of documents and their upload to online platforms for businesses. Personal data can also be safely sent by encrypting it with this certificate. Documents pertaining to e-commerce, law, tender submission, and other private matters can all benefit from encrypted DSC. 

Combo DSC: The Sign and Encrypt Certificate can be used for both encryption and signing. Usually, it is used to file applications, forms, and papers from the government. It is appropriate for users who must uphold and verify the confidentiality of the shared data.

Classes Of DSC (Digital Signature Certificate)

The kind of DSC that must be applied for depends on the needs of the applicant and the reason for which the Digital Signature Certificate is needed. The certifying authorities provide three different kinds of certificates for digital signatures.

Class 1 Certificate: These are sent to individual or private subscribers and are used in the certifying authority's database to verify the user's name and email address.

Class 2 Certificate: These are provided to the signatories of the authority in order for them to electronically file forms on government portals, including the websites for the Ministry of Corporate Affairs (MCA), income tax, GST, and other agencies. Nevertheless, the Controller of Certifying Authority has directed that Class 2 Certificates be discontinued as of January 1, 2021, and Class 3 Certificates will be issued in their stead. 

Class 3 Certificate: Anywhere in India, these certificates can be used to participate in and place bids in online tenders and e-auctions. In order to take part in the online tenders, vendors need to possess a Class 3 digital signature certificate.

As of January 1, 2021, Class 2 Certificates are no longer available from CCA. As a result, individuals who need to sign online forms for the Registrar of Companies (ROC), customs, income tax, patent and trademark filing, GST applications, and other government agencies must obtain Class 3 Certificates.

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Instructor
Manisha Gupta
Role : Finance Executive
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  • Experience : 2.6 years
  • Specialist in : GSTR1, GSTR3, Accounts Receivable, Accounts Payable, E-commerce Accounting, Payroll
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