How To Use Digital Signature Certificate For e-filing Income Tax Return?

Taxpayers can now securely submit their Income Tax Returns online without any paperwork or physical documents using a DSC. In accordance with the regulations and provisions of the Income Tax Act 1961, digital signatures have been accredited the same status as regular signatures and are still a legal entity as per the current regulations and provisions.

A taxpayer or assessee must attach their Digital Signature to the tax return document to authenticate it when they submit or e-file their income tax returns online. The digital signature certificate contains a number of different elements, including the full name and public key of the owner.

What are the common uses of Digital Signatures?

The most common uses of digital signatures are as follows:

• To send digitally signed emails.
• E-filing of Income Tax Returns.
• For secure online transactions.
• Validating documents in Word, Excel, and PDF formats.

Apart from the use of digital signatures in Income Tax e-filing; there are several other uses of DSC which you’d like to read in detail. Trail back to one of our previous blogs using the given link “What is a Digital Signature and How it Works?”.

How to use a DSC for e-filing ITR?

To use a DSC for e-filing ITR, you must first know how to create a digital signature for income tax. The taxpayer must first get a verified digital signature from a Certifying Authority (CA) by applying for a DSC online as per the requisites mentioned in the application form present in the CA’s online portal. Here's a step-by-step guide for uploading Income Tax Return Online using a Digital Signature.

Step 1:

• Fill in the correct details and prepare the Income Tax Return form.
• Create an XML file from the original file.
• Save the file on your local computer system.

Step 2:

Go to the official site of Income Tax India and log in using your credentials.

Step 3:

Go to your private income tax management dashboard. Click on the "Submit Return" tab and select the file of an appropriate Assessment Year.

Step 4:

To sign the form, click the drop-down menu on the page to select the Form Name.

Step 5:

Select "Yes" when asked, "Do you want the file to be digitally signed?"

Step 6:

In the next field, select the type of digital signature you prefer - "Sign using .PFX file" or "Sign using USB token".

Select the appropriate option, upload the income tax return, and authenticate it according to your requirements.

How to register DSC on the Income Tax Portal?

1. To register an account, go to the tax department's e-filing portal- www.incometaxindiaefiling.gov.in
2. Log in using your credentials.
3. Upon logging in, click "My Account" and choose "Update Digital Certificate."
4. A file download process called "Store Certificate" will start automatically. Save the digital signature copy on your computer.
5. Return to the website and click "Upload your USB Token". This will redirect you to the next page, where you will see a button asking you to select the USB Token Certificate. Click "Browse" to open a window to select the downloaded file.
6. Select the file and click "OK," then enter the PIN code (enter the token password) and click "Sign" to complete the process.

After successful completion, you will receive a confirmation message on the screen, and you can check the status of your digital signature.

How are using DSCs a safe way to file your ITR?

Digital Signature Certificates are a secure way to sign digital documents, allowing the signer's identity to be authenticated. A digital signature cannot be disowned or claimed to be a forgery by the signatory because it is verified with checks in place.

With digital signatures, a document can also be protected from further alteration or editing (post-signing), and it can additionally be verified that the signer has attested to the signature, as forgeries are also generally not possible.

In conclusion, a digital signature and e-filing of the income tax return is the best way to ensure the security of your documents and streamline the entire process. Tax returns are filed by taxpayers taking responsibility for managing their own finances and reducing the risk of fraud and misrepresentation