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Let’s Understand the Basics of Digital Signatures!

Wondering what is digital signature standard? Well, you are at the right place. 

We all are dwelling in a world where keeping up with quotidian personal and business activities are turning out very easy and smooth. In today’s era where digital signatures are being amazingly welcomed all across the globe, we no longer have any restrictions in our personal and business lives.

Usually physical documents; for instance bills, statements, invoices will always require a handwritten signature to authenticate their legitimacy. Likewise, electric documents will also need validation. This is the actual function of digital signatures and they are meant to validate the authenticity of the electronic document.

The digital signature is an electronic signature that is comes into play when senders of certain documents want to ensure that the document is original and true to their consent. These signatures ensure the security and confidentiality of the document. And if by any means the document gets tampered during the sending process, the receiver will come to know that the document has been misused. Thus, digital signatures provide you security for your key documents. 

What is a Digital Signature Standard and why is it Important?

Digital Signature Standard is nothing but a digital signature algorithm developed by the US National Security Agency to generate a digital signature for the validation of e-documents. The Digital Signature Standard was brought into existence by the National Institute of Standards and Technology in 1994, and has turned out to be the United States Government standards for legitimizing electronic documents. 

Digital signature certificates require:

  • Name of the person
  • Pin code
  •  Name of the country
  •  Email address of the person
  • Date of certificate issuance
  • Name of the Certifying Authority 

There is no doubt that digital signature certificate provides additional protection and authenticity.  The digital signature provisions are different in different countries but the government regulations all across the globe have helped substantially with the adoption, solidity, and trustworthiness of digital signatures. 

Use Cases of Digital Signatures 

The best part about digital signatures is that they can be used by anyone for their specific reason they have as these signatures comes with no restrictions. This clearly shows that digital signature can be widely used in our daily lives. Let us see how! 

  • Securing your Personal Use

With digital signatures, you can always sign every document that you send out electronically to ensure its security and confidentiality because you don’t have to worry about where you are sending the document and to whom. Therefore, you can use it in the best way possible.

  • Utilize for Business Purposes 

It is always a good option to send electronically signed documents to your colleagues, business partners, investors, stakeholders and other shareholders when sending and communicating confidential official information for security reasons. The digital signatures can also be used to sign tenders and even in making your quotes and biddings. 

  • Filing in GST Return

With the initiation of GST in India, businesses are all set to witness better days. Still and all, the filling of GST returns is something what many people have had complications with due to the introduction of a new taxation regime. However, the easy issuance of digital signatures and the convenience of GST e-filing make the entire process much smoother, faster, reliable and secured. 

  • Filing of Income Tax 

Citizens of India are required to file their income tax returns all across India and the introduction of e-filing has made things a cake walk. The introduction of digital signatures has made things much simpler and better than ever. You can sign all the documents required anytime and anywhere. 

  • Facilitating ROC E-filing 

Companies are obligated to file certain documents with the Registrar of Companies in India for track records. Here, digital signatures come into play when signing all these important documents and easily send them over without any worries. 

  • FinTech Sector 

This is another significant sector that generally involves a lot of paperwork and digital signatures are completely disrupting the finance and insurance sector . Whether we consider application of loans, insurance claim, mortgages, and signatures will always be required. In order to streamline all the activities and make these processes smooth and easy, the financial institutions have begun accepting the digital signatures. 

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