How to generate digital signatures for income tax?

By | October 31, 2021

A Digital Signature Certificate makes it easier and more secure to file your tax returns. “E-filing is mandatory for all individuals/professionals with an annual gross receipt of INR 25 lakhs and above, and for business houses with an annual turnover of INR 1 crore and above,” according to updated provisions under section 44AB of the IT Act.

What is a Digital Signature Certificate, and why do I need one?

A Digital Signature Certificate verifies your identification over the internet. It also ensures the absolute secrecy of the information transferred via a digital certificate, providing you with a high level of protection for your online transactions. 

You can use certificates to encrypt data so that it can only be viewed by the intended recipient. You can digitally sign information to ensure that it has not been altered in transit and to confirm your identity as the message’s sender.

What are the uses of Digital Signature Certificates?

Digital Signature Certificates can be used for the following purposes:

  • For secure email and web-based transactions, as well as to identify other web-based transaction participants.
  • To establish SSL/ TLS encrypted protected sessions between your website and the user for web-based transactions and to prove domain ownership.
  • As a developer, you’re responsible for confirming code authorship and maintaining the integrity of distributed software applications.
  • To automatically access membership-based websites without inputting a username and password, sign web forms, e-tendering papers, file income tax returns, etc.

E-Filing of Income Taxes with Digital Signature Certificate

For e-filing, a particular segment of enterprises, families, and individuals must use a Digital Signature Certificate. A Digital Signature Certificate ensures better simplicity when submitting tax returns and higher security during any electronic transactions for people and businesses not covered by the newest mandate.

How can one generate a Digital Signature Certificate?

The authorised individual affixes a Digital Signature Certificate (DSC) to papers provided in electronic form. It assures that the documents submitted electronically are secure and legitimate. All documents filed on the Ministry of Corporate Affairs (MCA) portal have a DSC affixed to them. DSC is used to validate online transactions such as business or LLP incorporation and income tax e-filing.

Certifying Authority (CA) has been appointed by the Controller of Certifying Authority (CCA) to issue DSC. Class 3 DSC can only be issued by CAs. Hence, the generation of a DSC is very essential. 

Application requirements for a Digital Signature Certificate

The applicant must submit a completed DSC Application form. 

  • Anyone requesting for a Digital Signature Certificate must complete an Application Form for online submission and certifying authority verification of personal information.
  • Making a photo ID proof.
  • Address Verification Proof

Please visit the Certifying Authority’s website to fill out the Application form.

How to Get a Digital Signature Certificate in 5 Easy Steps

STEP ONE: Log in and choose your entity type.

Go to the website of a Certifying Authority in India that is authorised to issue Digital Certificates. You will be directed to the Digital Certification Services area once you have entered the page. Now, under the ‘Digital Certification Services’ section, select the sort of entity for whom you want a DSC: ‘person or organisation,’ for example.

Click on ‘individual’ if you’re applying for a DSC for yourself. The DSC Registration Form will appear in a new tab. On your computer, save the DSC Registration Form.

STEP 2: Fill in the blanks with the required information.

After you’ve downloaded the form, fill in all of the essential information in the form:

  • The DSC’s class.
  • Validity.
  • Sign just or sign and encrypt.
  • Name of applicant and contact information
  • The address of your home.
  • Identity & GST Number Proof Documents Specifications
  • Declaration.
  • Document to prove identity
  • Document as a proof of address
  • Officer of Attestation
  • Payment Information.

After filling out all of the required information, you must attach a recent photograph and sign the statement. Make sure the form is completely filled out. Make a copy of the completed form and keep it safe.

STEP 3: Identity and address verification

An attesting officer must attest the supporting document presented as confirmation of identity and address. Ensure that the attesting officer’s signature and seal are clearly visible on the accompanying proof documents.

STEP 4: DSC Reimbursement

A demand draught or check in the name of the Local Registration Authority where you will submit your application for verification must be obtained for payment of the DSC application. By searching for a Certifying Authority licenced to issue Digital Certificates online, you can learn more about the Local Registration Authority in your city.

STEP 5: Submit the required documentation

In an envelope, enclose the following:

  • Supporting document for Proof of Identity and Proof of Address attested by the attesting official.
  • Payment will be made via demand draught or cheque.

For further processing, address the attached envelope to the Local Registration Authority (LRA) and mail it to the LRA’s designated location.

You have successfully finished the application procedure for your Digital Signature Certificate after completing the above-mentioned steps by filling out the DSC Form and supplying the appropriate papers and payment.

Correction of a Digital Signature Certificate Error

An organisation must follow the four steps given below to alter the details or correct errors in the Digital Signature Certificate (DSC):

  1. Use your existing user-id to log in.
  2. Select ‘Change DSC details’ from the drop-down menu.
  3. Fill in the DSC’s required information.
  4. Select the DSC that has been renewed or changed.
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