Digital Signature is an electronic format of your physical signature, is required to sign e-forms like filing income-tax returns, company incorporation, Annual return filings, and e-tender filing, etc. 

Digital signature, as the name suggests, is an electronic equivalent of physical signatures, as they verify the identity of the sender of an electronic document. Such signatures are verified by a Certifying Authority, which also provides the sign holder with both a private key (used by the holder to encrypt their signature onto a document) and a public key (used by the receiver to verify the signature of the holder on an electronic document).  Nowadays, Digital signature is not used only to verify communications between individuals, but also to carry out online transactions such as Income Tax e-Filing, Company Incorporation, etc. 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. Think of the USB e-Token as the digital equivalent of a rubber stamp – connect it to a computer, sign the document in question, and you’re done! The DSC is a certificate issued by a Certifying Authority which also generates the public and private key for your Digital Signature.

With e-Filing becoming mandatory in increased spheres, Digital Signatures have become more pervasive in the market, out of the sheer necessity of having one.