Digital Signature Certificate for TDS

In this post, we have discussed on Digital Signature and Digital Signature Certificate (DSC) for TDS.

What is a Digital Signature?

A digital signature is a method used to validate the authenticity and strength of a message, be it a software or a digital document.

The digital signature is an identical copy of a handwritten signature or the stamp seal which provides far more inherent security. The intention of a digital signature is to solve the problem of tampering and impersonation in digital communications.

What is a Digital Signature Certificate?

Digital Signature Certificate (DSC) is the electronic format of a physical or paper certificate like a driving license, passport, etc. These certificates serve as proof of identity of an individual or an organization for a certain purpose online /  computer.

Digital Signature Certificate (DSC) is given electronically to prove the identity of an entity. This is necessary to access information or services either on the Internet or to sign certain documents digitally.

Need for DSC

A Digital Signature Certificate (DSC) authenticates the identity of the user electronically. These certificates also provide a high level of security for online transactions by ensuring complete privacy of the information in exchange. Also, they can be used to sign/encrypt information such that only the intended recipient can read it.

The user can digitally sign information to assure the recipient that it is not changed in transit, and also verify the identity as the sender of the message.

Digital Signature Certificate usages

  • For sending and receiving digitally signed and encrypted emails/documents.
  • For carrying out secure web-based transactions
  • In eTendering, eProcurement, for Registrar of Companies e-filing, Income Tax for e-filing income tax returns, and also in many other applications.
  • For signing documents like MS Word, MS Excel, and PDFs

Where to purchase a Digital Signature Certificate (DSC)?

A legally valid Digital Signature Certificate (DSC) is available only through a Controller of Certifying Authorities (CCA), Government of India, or Licensed Registration Authorities (RA).

What are the different classes of Digital Signature Certificates?

Certificates given by the Certifying Authority are available in four different classes. These classes clearly define the purpose and the usage of each class as well as the verification methods underlying the issuance of the certificate. The four classes for DSC are the following:-

  • Class 0 Certificate: This certificate is given only for demonstration or test purposes.
  • Class 1 Certificate: These certificates are given to individuals and private subscribers. Also, these certificates will confirm that the user’s name (or alias) and E-mail address form an unambiguous subject within the Certifying Authorities database.
  • Class 2 Certificate: These certificates are given for both business personnel and private individuals use. Furthermore, these certificates will confirm that the information in the application made available by the subscriber does not conflict with the information in well-recognized consumer databases.
  • Class 3 Certificate: This certificate is given to individuals as well as organizations. As these are high assurance certificates, primarily intended for e-commerce applications. Thus, they shall be given to individuals only on their personal (physical) appearance before the Certifying Authorities.

Digital Signature Certificate for TDS return filing

Taxpayers who have a digital signature certificate can sign their TDS returns using DSC (Digital Signature Certificate).

The digital signature certificate can be used for:

    • Filing of Income Tax returns
    • Registering and verifying PAN online
    • Filing of TDS statements online

Click here to view e-Tutorial of Registration of Digital Signature Certificate for TDS on the TRACES website

So, this ends our post on Understanding of Digital Signature Certificate for TDS. If you have any questions or doubts kindly drop them in the comment section below.