On 26th November 2020, the CCA (Controller of Certifying Authorities) issued new guidelines stating that Class 2 DSC will be discontinued from 1st January 2021.
What this means:
- After 1st January 2021, Class 2 DSC cannot be purchased or renewed
- Existing Class 2 DSC will be valid and hence can be used until its expiry
- After 1st January 2021, Class 3 DSC will be valid and can be used for various purposes including ROC, GST, Income Tax, PF, Tenders etc.
- Government DSC will require a video
- After 1st January 2021, there will be no traditional (paper-based) DSC
- All DSC must be downloaded within 30 days of receiving approval
The importance of Class 2 DSC
In the current business climate, business leaders and owners in India need to sign an increasing number of documents. Furthermore, both the governments and businesses are embracing digitalisation to reduce the burden of paperwork, and to increase transparency in their various dealings. From forms and contracts, to tenders and IT returns, a lot of paperwork is being eliminated in favour of digital documents. But to maintain document integrity and version control, digital signatures have become a necessity.
In the taxation and corporate world, the most used type of digital signature is Class 2 DSC, which is used to sign everything from audit reports and MCA forms, to PF and IT returns. This DSC, like others, is issued by Certifying Authorities (CAs) after electronic authentication of users.
How the discontinuance of Class 2 DSC will impact you
Since Class 2 DSC will be discontinued from 1st January 2021, this will impact all users who currently rely on it for their business and financial transactions.
Impact 1
No new digital signature will be issued after 31st December 2020. However, if you get your Class 2 DSC renewed before this date, it will remain valid until expiry date.
Impact 2
Users who don’t buy a Class 2 DSC on or before 31st December 2020 will have to buy Class 3 DSC to meet the needs which were earlier being satisfied by Class 2 DSC.
Class 3 DSC costs 3 – 4 times as much as a Class 2 DSC.
Users can either:
Wait till 1st January 2021 and buy an expensive Class 3 DSC
OR
Buy a much cheaper (and still valid) Class 2 DSC on or before 31st December 2020
MyDSC(Prime Infotech Solutions) recommendation
Instead of buying an expensive Class 3 DSC, we recommend buying a Class 2 DSC. However, you must do this on or before 31st December 2020 otherwise it will no longer be valid.
Save money by taking action now!
Purchase Class 2 DSC from MyDSC(Prime Infotech Solutions) without further delay!
Disclaimer: The information is provided purely for informational and educational purposes only. It should not be misconstrued as legal advice. MyDSC(Prime Infotech Solutions) cannot take any responsibility for the result or consequences of any attempt to use or adopt any of the information presented herein.
MyDSC – Mytaxguru provides numerous affordable registration/taxation/compliance services that enable entrepreneurs and small business owners to start, manage and grow their business. Our aim is to educate Indian businesses about India’s legal and regulatory requirements, and support them at every stage to ensure complete compliance and long-term growth.
Contact Mytaxguru to buy Class 2 DSC without delay!
Phone: 022-2308-0666, +91-9223239277
Email: dsc@mydsc.net