A Digital Signature is the equivalent of a physical signature in electronic format, as it establishes the identity of the sender of an electronic document. Digital Signatures are used in India for online transactions such as Income Tax E-Filing, Company or LLP Incorporation, Filing Annual Return, E-Tenders, etc.,

There are three types of Digital Signatures, Class I, Class II and Class III Digital Signature.

• Class I type of Digital Signatures are only used for securing email communication.
• Class II type of Digital Signatures are used for Company or LLP Incorporation, IT Return E-Filing, Obtaining DIN or DPIN, and filing other forms with the Ministry of Corporate Affairs and Income Tax Department.
• Class III type Digital Signatures are used mainly for E-Tendering and for participating in E-Auctions.
  Digital Signatures come in the form of a USB E-Token, wherein the Digital Signature Certificate is stored in a USB Drive and can be accessed through a computer to sign documents electronically.