E-signature legality in India

Information Technology Act, 2000 (Act 21 of 2000), as amended by the IT (Amendment) Act, 2008; MeitY Notification S.O. 4720(E) dated 26 September 2022 amending the First Schedule; Bharatiya Sakshya Adhiniyam, 2023 (in force 1 July 2024, replacing the Indian Evidence Act, 1872); Indian Contract Act, 1872.

Digital signature (public-key based, needs a Digital Signature Certificate from a licensed Certifying Authority); electronic signature (only a Second Schedule technique, such as Aadhaar or other e-KYC eSign); and secure electronic signature under section 15, which is the only one that unlocks evidentiary presumptions. A typed or drawn signature is not a Second Schedule technique.

• Commercial and vendor agreements
• Non-disclosure agreements
• Employment offer letters
• Insurance proposal forms
• Demand promissory notes and powers of attorney where a regulated financial entity is a party

This is the part worth reading twice. These documents either cannot be signed electronically at all, or need a higher-assurance form than an ordinary online signature.

• Trusts
• Wills and any other testamentary disposition
• Negotiable instruments other than cheques, and other than demand promissory notes or bills of exchange issued to or endorsed by an entity regulated by the RBI, NHB, SEBI, IRDAI or PFRDA
• Powers of attorney, other than those empowering such a regulated entity
• Contracts for the sale or conveyance of immovable property (removed from the Schedule in 2022, but still blocked in practice by registration requirements under the Registration Act, 1908)
• Anything a tax, company or procurement rule requires to carry a Digital Signature Certificate

A DSC, issued by a licensed Certifying Authority, is required for filings with the Ministry of Corporate Affairs and the Registrar of Companies, for GST filings by companies registered under the Companies Act, 2013, for income tax e-verification by companies, political parties and audited taxpayers, and in practice for government e-procurement portals. No web signing tool substitutes for a DSC in those situations, including this one.

A plain electronic signature does form a binding contract in India, so the real fight is proof, not legality. Because a non-secure signature carries no statutory presumption, your audit trail and the certificate accompanying the electronic record do the work. Stamp duty and compulsory registration requirements survive electronic signing.

FileHook produces standard electronic signatures with a tamper-evident audit log and a certificate of completion. We do not offer signer identity verification, qualified signatures, or certificates from a licensed authority. Where the notes above say you need one of those, you need a different tool, and we would rather tell you now.

• Information Technology Act, 2000 (India Code)
• Controller of Certifying Authorities, e-authentication guidelines

This page is general information, not legal advice. Laws change and the right answer depends on your document and your situation. Check with a qualified lawyer in the relevant country before relying on it for anything that matters.