During tax season, the signing step is where many filings get stuck. You may have everything ready, but if you choose the wrong signing method, the portal can refuse to accept the submission or keep it pending verification.
Taxpayers often end up choosing between a Digital Signature Certificate (DSC) and Aadhaar-based digital signing (Aadhaar eSign). They both help you sign electronically, but they are not meant for the same taxpayer profiles or use cases.
What a DSC and Aadhaar eSign Mean in Simple Terms
Both methods let you sign online, but the way your identity is verified is different.
A Digital Signature Certificate (often called a DSC) is an electronic signature tool issued by a licensed certifying authority. It generally involves a physical token paired with a PIN to confirm your identity and safeguard the document's integrity when you sign it.
People sometimes refer to this broadly as a digitally signed certificate process because the certificate is what enables the digital signing action.
Aadhaar eSign, on the other hand, is an Aadhaar-linked signing method that verifies you using OTP or biometric verification tied to your Aadhaar details. It’s designed to be quick and remote, as long as your Aadhaar is linked to an active mobile number.
Why Tax Filings Need Digital Signing in The First Place?
The tax filing system uses digital signing to confirm that the return was filed by you (or an authorised person) and that the submitted data hasn’t been changed after signing.
In simple terms, digital signing aims to ensure:
Identity verification of the filer
Integrity of the return and attachments
A clear audit trail of who signed and when
That’s why the portal may accept one method for certain profiles and insist on another for specific compliance cases.
Aadhaar-Based Digital Signing: When it Usually Fits
Aadhaar eSign is generally positioned as the easier option when your filing is personal and doesn’t fall under cases where the system expects a certificate-based signature.
You will typically consider Aadhaar eSign when:
You’re filing as an individual (or a family unit category), and your case is not under tax audit
You want a fast, paperless way to complete the e-verification/signing step
You’re signing routine documents and forms where high-grade certificate signing isn’t specifically required
What makes Aadhaar eSign attractive is its simplicity. If your Aadhaar-linked mobile is active and accessible, you can complete the signing step without handling a physical token.
Digital Signature Certificate: When It Is Typically Needed
A DSC is commonly described as the required route when the filing is done for an entity or where audit-related compliance applies, or wherever the portal explicitly asks for a certificate-based signature.
A DSC may be needed when:
You’re filing on behalf of a company-type entity or a partnership-style entity
Your accounts fall under audit requirements under the income tax rules
You are submitting returns or forms where the portal mandates DSC authentication
You are filing on behalf of a DSC-requiring entity or handling corrections/rectifications for such entities that demand stronger authentication.
The broad idea is simple: when compliance and legal accountability take priority over convenience, certificate-based signing is usually the safer fit.
Difference Between Digital Signature And Aadhar Based E Sign
The easiest way to decide is to compare how each option works in real life.
Point Of Comparison | DSC | Aadhaar eSign |
How identity is verified | Certificate-based identity + token + PIN | Aadhaar-linked OTP or biometrics |
What you need to use it | A DSC issued by a certifying authority and a token | Aadhaar + access to Aadhaar-linked verification |
Typical strength | Higher security due to hardware-based key storage | Convenient but depends on Aadhaar-linked mobile/biometrics |
Where it’s used more often | Compliance-heavy filings and entity filings | Individual filings and routine document signing |
What can block you | Token setup issues certificate not available/active | Mobile not linked/available OTP/biometric hurdles |
If you’re specifically searching for the difference between a digital signature and Aadhaar-based e-sign, remember this line: DSC is certificate-and token-driven; Aadhaar eSign is Aadhaar-verification driven.
How To Choose The Right Option For Your Filing
Start with the filing requirement, not the tool. Your choice becomes clear once you identify what the portal expects for your profile.
Use this quick approach:
Check whether your filing is personal or on behalf of an entity
Check whether your case falls under audit-type compliance requirements
Look for the portal’s signing requirement on the submission/verification step
Choose Aadhaar eSign if your filing category allows it and you want speed
Choose DSC if your filing category expects certificate-based signing or you prefer higher-grade authentication
A good rule of thumb: if there’s even a hint that your filing needs stronger compliance authentication, DSC is usually the safer route.
How To Digitally Sign a Document
The steps depend on whether you’re signing with DSC or with Aadhaar eSign. Here’s the plain version of how to digitally sign a document in both cases.
Signing With DSC (Token-Based)
Ensure your DSC is available and active, and the token is working on your computer
Plug in the token and open the filing or signing screen that supports certificate signing
Select the DSC option and choose the certificate shown
Enter the token PIN when prompted to complete the signature
Submit and confirm that the signing step shows as successful
Signing With Aadhaar eSign (Aadhaar Verification Based)
Choose the Aadhaar eSign/e-verify option on the signing screen
Enter Aadhaar details as required by the flow
Complete OTP or biometric verification
Confirm the signing step and check the acknowledgement/status message
If your goal is speed and your Aadhaar-linked mobile access is stable, Aadhaar-based digital signing is usually smoother. If your goal is stronger certificate-backed authentication, DSC is usually the better fit.
Conclusion
For FY 2025-26, the decision is less about which method is “better” and more about which method fits your filing category. Aadhaar eSign is usually the faster route for straightforward personal filings, while a DSC is typically the right choice where the system expects stronger, certificate-based compliance authentication.
Frequently Asked Questions
Q1: Do I always need a digital signature certificate for tax filing?
Not always, many individual filings can be completed with Aadhaar eSign, but certain filings are generally expected to be signed using a DSC based on profile and compliance requirements.
Q2: What is Aadhaar-based digital signing used for in tax season?
It is commonly used for individual-style filings where Aadhaar-linked OTP or biometric verification is accepted as the signing and verification step.
Q3: What is the biggest difference between a digital signature and an Aadhaar-based E-sign?
DSC relies on a certificate and token-based signing, while Aadhaar eSign relies on Aadhaar-linked verification, such as OTP or biometrics.
Q4: Can a DSC be used for more than just tax filing?
Yes, a DSC is commonly described as reusable across multiple official and compliance-related signing needs, depending on where certificate signing is accepted.
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