With the advent of computerization, everything has now gone online – the newspaper has been replaced by e-newspaper, greeting cards have been replaced by e-greeting cards and income tax returns have been replaced by e-income tax returns.
The computerization of the first 2 examples was easy as authentication is not as much a matter of concern as it is in the case of filing the Income Tax Return. It is very important that all correct particulars are stated in the Income Tax Return and the person furnishing the same submits a declaration that all particulars stated are true and fair to the best of his knowledge.
Signing a declaration is easy in case of paper filing as the declarant can easily sign the declaration. But how can we sign this declaration while submitting documents online???
This was 1 reason that it took some time for the government to initiate the process of online filing on Income Tax Returns but now with technology like Digital Signature Certificates being easily available, furnishing an Income Tax Return online is just a click away.
What is a Digital Signature Certificate?
A Digital Signature is a Certificate for demonstrating the authenticity of the digital message or document. The presence of a Digital Signature of a person indicates that the person adopts the contents of that electronic message. Every Individual is allotted a different Digital Certificate which helps in identifying which Digital Signature belongs to which person.
A digital signature authenticates electronic documents in a similar manner a handwritten signature authenticates printed documents. This signature cannot be forged and it asserts that a named person wrote or otherwise agreed to the document to which the signature is attached. The recipient of a digitally signed message can verify that the message originated from the person whose signature is attached to the document and that the message has not been altered either intentionally or accidentally since it was signed. Also, the signer of a document cannot later disown it by claiming that the signature was forged. In other words digital signatures enable the “authentication” and “non-repudiation” of electronic messages assuring the recipient of the electronic message of both the identity of the sender and the integrity of the message.
The Digital Certificates are typically issued with 1 year validity, 2 years validity and 3 years validity. It includes the cost of medium (a UBS token which is a one-time cost) the cost of issuance of Digital Certificate and the renewal cost after the period of validity.
Applicability of Digital Signature while uploading Income Tax Return
In India, Digital Signatures are issued by a licensed certifying authority and the Information Technology Act, 2000 grants it the same status as a physical signature.
Digital Signatures are usually used at the time of statutory and other filings like Income Tax Returns which have to be mandatorily signed at the time of submission. In case you are furnishing these Returns online, there are 2 ways of signing the Income Tax Return
- Using Digital Signatures (Explained Below)
- Using Handwritten Signatures (i.e. taking a print out of the Return uploaded online, signing it and then manually sending the paper return to the Income Tax Office in Bangalore)
Exception: Vide notification dated 9th July 2010 amending Rule 12, the CBDT has made it mandatory all Companies filing ITR-6 to digitally sign the I-T return for AY 2010-11.
How to Register the DSC on E-filing website?
The Digital Signature Certificate is to be registered on the website of the Income-Tax Department. This is necessary to ensure that the authorized person and DSC verify the tax return. DSC can be registered in the following steps:
- Step 1: Visit www.incometaxindiaefiling.gov.in and login with registered PAN and Password.
- Step 2: After log-in, from main menu go to Profile Settings > Register Digital Signature Certificate.
- Step 3: From the landing page, download DSC Management Utility from the link given on that page. Extract the ZIP folder and open the DSC management utility.
- Step 4: Go to the second tab Register/Reset Password using DSC in DSC Management Utility.
- Step 5: Insert the DSC USB token in USB port of Computer/Laptop.
- Step 6: Enter the E-Filing User ID and PAN of the DSC (Registered in E-Filing).
- Step 7: Select the type of DSC (USB Token) and generate the signature file.
- Step 8: Go back again to the e-filing portal and attach the Signature File (generated in Step 7) on the page of Register Digital Signature Certificate and submit.
On successful registration of DSC, a confirmation email shall be sent on the registered Email ID.
Registration of DSC is the first step in the process of verification of the Income-Tax Return with DSC. Once it is registered, the next step is to verify the ITR, which can be done with the following process.
How to Verify ITR using DSC?
- Step 1: Download the latest DSC management utility from e-filing portal. Extract the zip folder and open the utility.
- Step 2: Select the third tab Upload XML in the DSC management utility and Browse the .XML File generated from Excel or Java Return filing Utility. In case the return is being prepared from the online e-filing account, then use the fourth tab of Submit ITR/Form Online.
- Step 3: Select the type of DSC (USB Token) and generate the signature file.
- Step 4: Go back to the e-filing website. Select the radio button of Digital Signature Certificate at the time of uploading of ITR XML file.
- Step 5: Upload the Signature file along with XML file at the time of e-filing.
