Income Tax Circular on digitally signing Form 16  
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The Income Tax Department has issued a Circular No. 2/2007 dated 21/5/2007 by which they have permitted employers / organizations to Digitally Sign Form 16 / TDS Certificates of its employees and issue them digitally signed Form 16 soft copies, instead of printed ones.

Legality of Digital Signatures

As per the Indian IT Act 2000, digital signature certificates are now accepted at par with handwritten signatures. Any electronic document that has been digitally signed, is legally valid, and is treated at par with the physically signed paper document. Therefore, Digitally Signed Form 16 / TDS Certificate has the same legal validity as a physically signed Form 16.

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