The Central Board of Direct Taxes (CBDT) has officially approved the use of e-signatures for select tax forms, allowing eligible companies to verify and submit filings without relying solely on traditional Digital Signature Certificates (DSCs). This measure is intended to simplify compliance procedures, particularly for small and medium-sized enterprises (SMEs), and to expand secure digital options for authorized representatives. E-signatures are now permitted for specific forms that do not require mandatory audit or high-risk verification, including rectification requests, responses to notices, and select declaration forms.

Under the new guidelines, e-signatures must be Aadhaar-based and executed through an OTP-authenticated process, with the signer’s Aadhaar linked to their PAN and registered on the income tax portal. Once authenticated, the e-signed document is treated as legally valid and receives an official acknowledgment number. However, for high-value filings such as ITR-6, audit reports (Form 3CD), and TDS returns (Form 24Q/26Q), the use of a Class III DSC remains mandatory to maintain strict verification standards.

The CBDT has upgraded its e-filing portal to seamlessly support both DSC and e-signature workflows, depending on the form type and user eligibility. Companies are advised to identify which forms qualify for e-signature and ensure their signatories are Aadhaar-enabled and properly mapped in the portal’s authorized profile section. This step is part of the broader digital compliance roadmap, aimed at enhancing filing flexibility, reducing procedural delays, and strengthening India’s paperless tax ecosystem.