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Digital Signature Certificate acts as a substitute for a hand-written signature. For Income Tax eFiling enrollment, a Class 3 digital signature certificate is needed, with a validity of 1 year, 2 years, or 3 years.
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Difference Between Digital Signature & Electronic Signature Digital Signature and Electronic Signature (or eSign) are inherently a part of electronic mode of signing but function differently. They are absolutely different from one another, in their working, benefits, functioning etc.
Type of Signature A digital signature certificate (DSC) contains information about the user’s name, pin code, country, email address, date of issuance of certificate and name of the certifying authority. And this “fingerprint” is embedded in the document that is digitally signed. When you use eSign to electronically sign a document you could do that using a pin, otp, password, handwritten name, or any other mode in which you express consent.
Legally Binding Digital signature has been legally validated by the court of law under the IT Act, 2000. E-Sign is legally valid under Section 5 of Indian Information Technology Act, 2000. But, eSign is legally valid when all the parties involved give consent for this mode of signing. Digital signatures are ethereally legally binding. eSign is mostly a digital form of wet ink signatures but digital signatures are more complex than that with their encryption decryption aspect.
Verification Main goal of eSigning is to verify a document - meaning - that the document is legit and you have verified it. Whereas a digital signature along with verifying the documents secures it too. Ease eSigning is very easy in its operation, digital signing is also very easy but comparatively eSigning is much easier because there’s no or minimal verification process whereas proper verification is required to enable digital signing. There is no digital signature certificate or tokens involved which also makes it hassle free and convenient.
Digital Signature Certificate You need to obtain a digital signature certificate to enable digital signing in your systems. It's due to this DSC that digital signing offers all the benefits that it does. For using eSign, you do not need a DSC. Protection Qualities It is impossible to penetrate a document that has been signed using a digital signature, a hacker even if they have a hold over their document will not be able to tamper it. eSign although is secure but does not offer this level of security to the affixed documents.
Authorization The CCA of India licenses Certifying Authorities enabling them to authorize DSCs to various entities. So, you can avail a DSC only through a certifying authority (CA) in India. Whereas you can get an eSign through any eSign provider. As Capricorn CA is the most favored guaranteeing expert in India to give DSC however aside from this Capricorn CA likewise offers bulk pdf signer and other signing-related arrangements like a digital signature for income tax thus a lot of different arrangements are accessible for people and associations.
Audit Trail With Digital Signing - All the information about the signing, revisiting, opening the document - everything - the whole audit trail can be accessed by a company. In this way, the management has the whole knowledge of the engagement of different employees with the particular affixed document.
We hope this article explains to you the exact difference between digital signing and electronic signing properly and prompts you to actually move with the world which is digitizing everyday, no matter how small or big you know your firm to be - any form of electronic signatures are a must for your company.
