The Information Technology Act (IT Act) has provisions for giving legal recognition to various types of documents and transactions being in electronic form, instead of being in the traditional physical or paper form. Moreover, this Act has also given recognition to electronic signatures.
For example, Section 4 of the IT Act lays down that where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then such information or matter can be rendered or made available in an electronic form.
Section 6 of the Act permits use of electronic forms for the Government use in matters such as
(a) the filing of any form, application or any other document with any office, authority, body or agency owned or controlled by the appropriate Government in a particular manner;
(b) the issue or grant of any licence, permit, sanction or approval by whatever name called in a particular manner;
(c) the receipt or payment of money in a particular manner.
Sections 6-A allows delivery of certain services by the service providers in electronic form.
Section 8 allows publication of rules, regulations, etc., in electronic gazette.
Section 5 gives legal recognition to electronic signatures and considers them at par with the signatures made by a person by hand.
Under Section 3-A(1), read with Second Schedule to this Act, e-authentication of electronic records using Aadhaar or other e-KYC services have been recognized. Section 3 gives recognition to digital signatures.
These and various other provisions of the IT Act have meant that most of our documents and transactions are now in the electronic form. For example, you can transfer money online, many of your banking transactions are online, you can pay bills online, you can buy / sell shares online, your DEMAT account for shares is online; email is recognized as a mode of communication, you can file your Income Tax and GST Returns online, etc.
However, there are certain categories of documents and transactions, which are still kept out of the IT Act provisions, i.e., they cannot be done in electronic form. What are these documents and transactions, which are still required to be done in physical / paper form (and not in electronic form)?
Well, Section 1(4) of the IT Act lays down that provisions of this Act shall NOT apply to documents or transactions specified in the First Schedule, and also that the Central Government may, by notification in the Official Gazette, amend the First Schedule by way of addition or deletion of entries thereto.
At present, following documents and transactions are mentioned in the First Schedule to the IT Act:
1. A negotiable instrument (other than a cheque) as defined in Section 13 of the Negotiable Instruments Act, 1881.
2. A power-of-attorney as defined in Section 1-A of the Powers-of-Attorney Act, 1882.
3. A trust as defined in Section 3 of the Indian Trusts Act, 1882.
4. A will as defined in clause (h) of Section 2 of the Indian Succession Act, 1925, including any other testamentary disposition by whatever name called.
5. Any contract for the sale or conveyance of immovable property or any interest in such property.
Therefore, all these documents and transactions have compulsorily to be in physical / paper form and they cannot be in the electronic form.
For example, a sale deed of an immovable property cannot be in electronic form. It is still required to be in the physical paper form.
