E-Signature Legality in India

What the IT Act recognises

The Information Technology Act, 2000 is the main law on electronic records and signatures in India. Its 2008 amendment added the broader idea of an “electronic signature” next to the original “digital signature”. Four sections matter most:

• Section 3: a digital signature authenticates an electronic record with asymmetric cryptography and a hash function, backed by a Digital Signature Certificate (DSC).
• Section 3A: an electronic signature is valid if it uses a reliable technique listed in the Second Schedule. Aadhaar-based eSign was added in 2015.
• Section 5: where a law requires a document to be signed, a digital or electronic signature applied in the prescribed manner satisfies that law.
• Section 10A: a contract is not unenforceable merely because it was formed by electronic means.

Three ways to sign, three levels of proof

A simple e-signature is not a Second Schedule technique, so it does not meet a statute that specifically demands a signature. That matters less than it sounds: under the Indian Contract Act, 1872 most contracts do not need to be signed at all to be binding. What counts is proof that the parties agreed. A signed PDF plus the emails in which it was sent and accepted is that proof. If a dispute reaches court, electronic records are admitted with a certificate under section 63 of the Bharatiya Sakshya Adhiniyam, 2023, which replaced section 65B of the Evidence Act from 1 July 2024. The stronger the link between the signature and the person, the easier that is, which is why banks and lenders prefer Aadhaar eSign or a DSC.

Documents the IT Act excludes

Under section 1(4), the Act does not apply to the documents in its First Schedule:

• negotiable instruments other than cheques, such as promissory notes and bills of exchange;
• powers of attorney;
• trusts;
• wills and other testamentary dispositions.

A notification of 26 September 2022 changed this list. It removed the entry for contracts for the sale or conveyance of immovable property, so the Act now applies to them, although a sale deed still has to be registered under the Registration Act. It also brought two narrow groups back under the Act: powers of attorney that authorise an entity regulated by the RBI, NHB, SEBI, IRDAI or PFRDA to act for you, and demand promissory notes and bills of exchange issued in favour of or endorsed by such an entity. For anything still on the list, check the current schedule or ask a lawyer first.

Stamp duty and registration still apply

Electronic signing changes how a document is signed, not the duties attached to it. Agreements that attract stamp duty under the Indian Stamp Act or a state stamp law still need it, and an unstamped instrument is not admissible in evidence until the duty and penalty are paid. Many states issue e-stamp certificates. Documents that must be registered under the Registration Act, 1908, including leases of immovable property for more than a year, go through the sub-registrar's process. That is one reason many residential rental agreements are written for 11 months.

Signing a PDF with SigPDF in India

SigPDF creates a simple e-signature: you draw or type your signature, place it on the PDF with initials, dates or text, and download the signed file. The document is processed in your browser and is not uploaded to our servers. It is a good fit for everyday agreements, offer letters, NDAs, invoices and forms that someone has emailed to you. Where a law, a regulator or the other party requires Aadhaar eSign or a DSC, use a licensed provider.