Section 5 IT Act: Legal recognition of electronic signatures

Information Technology Act, 2000

Section 5 IT Act at a Glance

Section 5 IT Act gives legal recognition to electronic signatures where any law requires a person's signature. That requirement is satisfied when the information or matter is authenticated by an electronic signature affixed as prescribed by the Central Government.

Section 5 IT Act Bare Act Text

5. Legal recognition of electronic signatures.

Where any law provides that information or any other matter shall be authenticated by affixing the signature or any document shall be signed or bear the signature of any person, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied, if such information or matter is authenticated by means of electronic signature affixed in such manner as may be prescribed by the Central Government.

Explanation.—For the purposes of this section, “signed”, with its grammatical variations and cognate expressions, shall, with reference to a person, mean affixing of his hand written signature or any mark on any document and the expression “signature” shall be construed accordingly.

Amendments to this section
  • Subs. by Act 10 of 2009, s. 2, for "digital signatures" (w.e.f. 27-10-2009).

Section 5 IT Act in Simple Words

Section 5 IT Act treats an electronic signature as satisfying a legal requirement for a person's signature. It applies where any law requires information or another matter to be authenticated by affixing a signature, or requires any document to be signed or to bear a person's signature. Despite anything contained in that other law, Section 5 IT Act treats the signature requirement as satisfied if the information or matter is authenticated by means of an electronic signature affixed in the manner prescribed by the Central Government.

The Explanation to Section 5 IT Act clarifies what 'signed' and 'signature' mean in the laws that Section 5 IT Act addresses. With reference to a person, 'signed' (along with its grammatical variations and related expressions) means affixing that person's handwritten signature or any mark on any document, and 'signature' carries the corresponding meaning. Thus, even where another law refers to a handwritten signature or physical mark on a document, an electronic signature affixed in the prescribed manner satisfies that requirement.

Act 10 of 2009 substituted "electronic signatures" for "digital signatures" in Section 5 IT Act with effect from 27 October 2009. While Section 4 IT Act gives legal recognition to electronic records where writing is required, Section 5 IT Act gives legal recognition to electronic signatures where signing is required.

When Section 5 IT Act Applies

  • A law requires information or another matter to be authenticated by affixing a signature, or requires a document to be signed (by handwritten signature or mark) or to bear a person's signature.
  • The information or matter is authenticated by means of an electronic signature.
  • The electronic signature is affixed in the manner prescribed by the Central Government.

Example of Section 5 IT Act

Mohit, a machinery supplier in Dharamshala, submits a statutory compliance declaration to an inspecting officer, Chitra, under a law requiring the declaration document to bear the supplier's handwritten signature. Instead of signing a paper form by hand or placing a physical mark on paper, Mohit authenticates the electronic declaration using an electronic signature affixed in the manner prescribed by the Central Government. Under Section 5 IT Act and the Explanation to Section 5 IT Act, Mohit's electronic signature satisfies the legal requirement that the document be signed. Chitra cannot treat the declaration as unsigned solely because Mohit used a prescribed electronic signature instead of a handwritten signature.

When Section 5 IT Act Does Not Apply

  • An electronic signature that is not affixed in the manner prescribed by the Central Government does not satisfy a legal signature requirement under Section 5 IT Act.
  • Under Section 1(4) IT Act, the Act does not apply to the documents and transactions in the First Schedule: a negotiable instrument other than a cheque (with exceptions for some instruments involving RBI, NHB, SEBI, IRDAI or PFRDA regulated entities), a power of attorney (unless it empowers such a regulated entity to act for the person executing it), a trust, and a will or other testamentary disposition.

FAQs on Section 5 IT Act

What is Section 5 IT Act?▼

Section 5 IT Act gives legal recognition to electronic signatures where any law requires information, a matter, or a document to be signed or to bear a person's signature. Section 5 IT Act treats that requirement as satisfied when the information or matter is authenticated by an electronic signature affixed in the manner prescribed by the Central Government.

Does Section 5 IT Act cover laws that refer to a handwritten signature or mark on a document?▼

Yes. Under the Explanation to Section 5 IT Act, 'signed' and 'signature' refer to affixing a person's handwritten signature or any mark on a document, and an electronic signature affixed as prescribed satisfies that requirement.

Does any typed name or informal electronic mark satisfy Section 5 IT Act?▼

No. Section 5 IT Act treats the signature requirement as satisfied only if the information or matter is authenticated by an electronic signature affixed in the manner prescribed by the Central Government.

Who prescribes the manner of affixing an electronic signature under Section 5 IT Act?▼

The Central Government. Under Section 5 IT Act, the electronic signature must be affixed in such manner as may be prescribed by the Central Government.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Information Technology Act, 2000 ·