With income tax returns or submission of GST returns going digital and paperless, digital signatures, in some instances, have become mandatory for submitting them. Not only ITR or GST filings need digital signatures, but in many cases like submitting e-tenders, placing an online purchase order, export-import documents need digital signatures.

Even debit and credit card statements from the bank need to be digitally signed to validate the documents. Let us talk in detail about Digital Signature Certificate for DGFT while submitting ITR or GST returns but first, let us explain it.

What is a Digital Signature Certificate?

Digital Signature Certificate for DGFT is nothing but a digital key that is secured and is issued by the certifying authority. It validates and identifies the person who is having the DSC or the Digital signature certificate. The certificate contains the user’s name, pin code, email address, country, and license validity.

There are three digital certificates classes, like for the individual, the directors or signatories of any organization, and the certificate for using during online bidding. It comes as a USB dongle and is usually valid for 1 or 2 years, and after that, it needs to be renewed.

The Need for DSC for ITR Return

As per section 44AB of the Indian Income Tax Act, any company, individual, or Hindu Undivided Family need to audit the book of accounts and submit Income tax returns after signing the uploads digitally; even political parties need Digital Signature Certificate for DGFT while submitting their Income tax returns.

However, they need DSC certificate class 2 for the same. One does not need to verify the Income-tax return with the Adhaar Number and OTP on the registered mobile number or send the hard copy to Bengaluru if the online submission is signed digitally. However, one should register the DSC in the Income Tax Portal during first-time use. The audited taxpayer only needs to authenticate the returns with the DSC.

DSC for GST Return

With the Goods and Service Tax or GST coming into force, any person liable to pay GST and submit returns must have Digital Signature Certificate for DGFT. Since GST returns are submitted online, and in some cases, invoices are also generated online, it has become mandatory to have DSC while submitting or generating them.

The Government can quickly identify the taxpayer as the digital signature certificate is linked with the Adhaar card or any photo identity card issued by the Government. An individual can get the DSC using those documents. For an organization, Authorization letter, proof of the organization, proof of signature is needed. One needs to have class 2 or 3 DSC for the same.

Overview

It is impossible to submit audited Income tax returns or GST returns without a Digital Signature certificate. As the country is heading towards paperless correspondences and submissions, DSCs are become important day by day to prove the authenticity of the submission and identification of a person or an organization. With the advancement of digital technology, DSCs help to have a hassle-free process of the transaction.

See Also

• Why The Indian Government Introduced DGFT Digital Signature Certificate?