A digital signature certificate helps to complete the Income Tax Return (ITR) verification process electronically. As the deadline for filing ITR is approaching, it is advisable that taxpayers obtain a digital signature certificate.
A digital signature certificate is the electronic equivalent of physical or paper certificates. It contains the name of the owner, public key details, information about certifying authority, serial number and digital signature. A Digital Signature Certificate can be presented digitally to prove a person’s identity, to access information or services on the internet or to sign documents digitally and comes in the form of a USB token.
The digital signature is issued by a licensed Certifying Authority (CA), that is a person who has been granted a license to issue a Digital Signature Certificate under section 24 of the Indian I-T Act, 2000.

Why you should make use of digital signature for e-filing tax returns

For digital signature, you need a digital signature certificate (DSC) issued by licensed Certifying Authorities (CAs) approved by the Controller of Certifying Authorities (CCA), Government of India.
If you have not filed your income tax return for financial year 2017-18, you can still do it before March 31, 2019, but with a penalty of Rs 10,000, and Rs 1000, if you earn less than Rs 5 lakh.
One of the important parts of filing income tax return (ITR) online is digital signature-an electronic form of signature to authenticate the electronic documents-as it lets you file your ITR in an easier and more secure way. Besides, as per revised provisions under section 44AB of Income-Tax Act, it is mandatory for individuals and professionals having an annual gross receipt of Rs 25 lakh and above to e-file their returns. The business houses, with annual turnover of Rs 1 crore and above, are also required to file ITR online.
The Digital Signature Certificate comes in the form of a USB token. The Digital Signature Certificates are typically issued with one-year, two-years or three years validity. These are renewable on expiry of the period of initial issue. Pricing of Digital Signature Certificate includes a one-time cost of USB, the cost of issuance of Digital Signature Certificate and the renewal cost after the period of validity. The issuance cost varies and is market-driven across all certifying authorities.

Why you need a digital signature certificate

A digital signature certificate serves as an electronic validation medium. Beyond that, you are provided with transaction security on a whole new level whenever you carry out online deals. This is done by making sure no unauthorized person or organization is privy to information exchanged in the course of an online transaction as long as you have a digital certificate.
The encryption of the information is exclusive to only businesses and organizations that have acquired q digital signature certificate. In essence, you can control who has access to transaction information and also, you can enhance the image of your organization via the use of a digital signature that assures the information has not been leaked while being transferred. Also, your identity as the convener of the message is confirmed.