Are electronic signatures legally valid in India?
What the IT Act says, which documents you can sign electronically, and which you cannot.
Yes, for most commercial agreements — with specific exceptions written into the law.
The legal basis
Section 10A of the Information Technology Act, 2000 provides that a contract is not unenforceable merely because it was formed electronically. Section 5 gives electronic signatures legal recognition, and the Indian Evidence Act (sections 65A and 65B) sets out how electronic records are proved in court.
What matters in practice is not the image of a signature but the evidence around it: who signed, when, from where, whether they consented, and whether the document changed afterwards. That is exactly what SignSpry's audit trail and seal record.
What you cannot sign electronically
The First Schedule to the IT Act excludes certain instruments. These still need wet ink:
- negotiable instruments other than cheques (promissory notes, bills of exchange)
- powers of attorney
- trust deeds
- wills and any testamentary disposition
- contracts for the sale or conveyance of immovable property
Electronic signature vs digital signature
The law distinguishes two things, and the difference matters:
- an electronic signature under section 10A — what SignSpry applies today,
backed by identity evidence, consent capture, an audit trail and a tamper seal
- a digital signature under section 3 — created with a certificate issued by a
licensed Certifying Authority, such as a DSC token or Aadhaar eSign
Company filings with the MCA, GST returns, income-tax filings and most government tenders specifically require the second kind. For commercial contracts between businesses, the first is what almost everyone uses.
Stamp duty is separate
Electronic execution does not change your stamp duty obligation. Duty is state-specific, and an insufficiently stamped agreement can be inadmissible as evidence until the duty and a penalty are paid. Our clause review flags agreements that say nothing about who bears stamp duty.
Aadhaar eSign
The second kind is available in SignSpry. A signer authenticates with an Aadhaar OTP, a licensed Certifying Authority issues a certificate in their name, and the result is a digital signature under section 3A. See Aadhaar eSign.
Documents that are excluded outright
Wills, negotiable instruments other than cheques, powers of attorney, trust deeds and conveyances of immovable property cannot be signed electronically at all. See What you cannot sign electronically.