Meaning of Digital Signature

• A digital signature is an electronic form of a physical signature used to authenticate documents.
  
• In income tax filing, it is used to verify identity and confirm the authenticity of returns and forms filed online.
  
• It is based on encryption technology and issued by certified authorities.
  
• It is stored on a USB token device and secured with a password.
  
• Recognized under the Information Technology Act, 2000 for legal validity.
  

Purpose of Using Digital Signature

• Provides a secure and tamper-proof way to sign income tax returns electronically.
  
• Ensures that the filing is done by the genuine person or authorized representative.
  
• It is mandatory for companies, LLPs, and certain professionals to use DSC.
  
• Used for filing forms, rectifications, appeals, and responses to notices.
  
• Avoids the need for physical signature or paper submission.
  

Who Needs Digital Signature

• Companies and LLPs must mandatorily file returns using a digital signature.
  
• Audit cases and taxpayers with income above the specified threshold may require it.
  
• Professionals such as Chartered Accountants may use DSC for client filings.
  
• Optional for individuals and HUFs not falling under mandatory categories.
  
• Beneficial for frequent filers and representatives handling multiple accounts.
  

How to Obtain a Digital Signature

• Can be obtained from licensed Certifying Authorities (CAs) approved by the government.
  
• Required documents include PAN, identity proof, and address proof.
  
• Issued for 1 or 2 years and can be renewed.
  
• Delivered as a secure USB token or file-based certificate.
  
• Type II or III digital signatures are usually used for income tax filings.
  

Using Digital Signature in Tax Filing

• Must be registered on the income tax e-filing portal under your profile.
  
• Plug in the USB token while filing the return.
  
• Select the DSC option to verify the return during submission.
  
• Must use a compatible browser and Java utility as required.
  
• Once verified, the return is considered successfully filed and authenticated.