What is Digital Signature Certificate (DSC) and why it is required

A Digital Signature Certificate (DSC) electronically verifies your identity. DSC is necessary for some services and categories of users. While it's optional in other circumstances. Here are some important FAQs according to the Income Tax website.

Digital Signature Certificate (DSC) is the electronic format of a physical or paper certificate. DSC serves as proof of identity of an individual or Organization for a certain purpose online / on computer. DSC authenticates and electronic document like how a handwritten signature authenticates a printed / handwritten document. DSC can be used to e-Verify returns filed by a taxpayer and is also mandatory in some cases.

Users who have chosen this option must use DSC to sign Income Tax Returns / Statutory Forms or to verify responses to notices issued by the Income Tax Department and refund reissue requests. Before signing or verifying any document, the user must first register their DSC with the e-Filing system.

DSC is mandatory for some services such as e-Verification of returns filed by companies and political parties as well as other persons whose accounts are required to be audited under Section 44AB of the Income Tax Act. In other cases, it is optional.

A valid DSC can be procured from a certifying authority and the same must be registered on the e-Filing portal post login.

Except in the instance of a Non-Resident Director of a Foreign Company, DSC will be reported against the Individual user's PAN. DSC will be registered under the email ID of a Non-Resident Director of a Foreign Company.

The DSC PIN is the password that the digital signature subscriber must use when uploading a digital signature. Every DSC token includes a default PIN. You can update the PIN using the installed DSC driver software (after inserting your DSC token into your computer's USB port).