Difference Between Signing and Encryption in DSC

Digital Signature Certificates (DSCs) have become a fundamental part of online verification, document security, and e-filing in India. Whether you are filing returns, signing contracts, bidding for tenders, or accessing government portals. You name it! DSCs are used everywhere!

Now, Digital Signature Certificates come in different types based on the user, the purpose, and the security level.

But among all the questions people ask, one doubt is the most common: What is the difference between Signing and Encryption in DSC?

Even though both functions exist within the same digital certificate, they serve completely different roles. So, let's clearly understand what Signing and Encryption really mean in DSC

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Digital Signature Certificates Under the IT Act, 2000

Digital Signature Certificates (DSCs) in India are legally recognised identity instruments under the Information Technology Act, 2000.

This Act gives DSCs the same legal status as handwritten signatures, as long as the certificate is issued by a licensed Certifying Authority (CA) approved by the Controller of Certifying Authorities (CCA).

Within these DSCs, the two core functions are defined:

- Signing
- Encryption

What Is Signature and Encryption DSC?

Sign DSC and Encryption DSC—

These functions often get mixed up, but they serve completely different purposes inside a DSC. One ensures identity and approval, while the other ensures data privacy and protection.

The two functions work together inside PKI (Public Key Infrastructure), but they are used in different situations on different portals.

What Is a Signing DSC?

A Signing DSC is a Digital Signature Certificate used exclusively for digitally signing documents, forms, and online submissions.

Its main purpose is to prove your identity, your approval, and the authenticity of the document.

What does a Signing DSC do?

- Confirms who signed the document

- Ensures the document is not tampered with after signing

- Adds a legally valid digital signature to PDFs, forms, and submissions

- Used for authentication on many government portals

Where Signing DSC Is Used?

- Income Tax e-filing

- GST filing

- MCA (ROC) filings

- EPFO

- Trademark and more

What Is an Encryption DSC?

An Encryption DSC is a Class 3 Digital Signature with encryption used to protect and secure sensitive information.

Its purpose is not to sign documents, but to encrypt (lock) data so that only the intended receiver can read it.

What does an Encryption certificate in DSC do?

- Encrypts (locks) your data before sending it online

- Ensures only the authorised recipient can decrypt (unlock) it

- Protects confidential files, forms, and communication

- Prevents unauthorised access, interception, or data theft

Where Is Encryption DSC Used?

- Some Banking & financial data submission

- Highly confidential document exchange

- Portals that require secure data upload

Key Differences Between Signing and Encryption in DSC

Here are the major differences Between Signing and Encryption in DSC:

1. Purpose

Signing DSC: Used for identity verification and approving documents.

Encryption DSC: Used for securing data before sending it online.

2. What It Ensures

Signing: Authenticity + Integrity

(Proves who signed the document and ensures no tampering)

Encryption: Confidentiality

(Ensures only the intended recipient can view the data)

3. Visibility

Signing: Your signature is visible on the document.

Encryption: Data is locked; nothing is visible to third parties.

4. Legal Standing

Signing DSC: Legally equivalent to handwritten signatures under the IT Act, 2000.

Encryption DSC: Not a signature; used purely for data protection.

5. What Happens After Use

Signing: If the document is edited after signing -> signature becomes invalid.

Encryption: If someone intercepts encrypted data -> cannot read it without the private key.

Sign and Encrypt Combo DSC

A Sign + Encrypt Combo DSC combines both functions of a Digital Signature Certificate into a single, powerful certificate.

This means you can digitally sign documents and encrypt data using the same USB token, without buying two separate DSCs.

Why the Combo DSC Is the Most Preferred Option

1. One DSC, two functions — convenient and cost-effective

2. Required on many portals where signing + secure upload is mandatory

3. Saves time during verification and reduces compliance issues

4. Works seamlessly across all major government portals

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Final Words

Choosing the right DSC depends entirely on your purpose — whether you need to sign, secure, or do both. For most professionals, organisations, and tender participants, a Sign + Encrypt Combo DSC offers the perfect balance of convenience, security, and compliance.

No matter which type you need, always ensure you buy your DSC from a licensed Certifying Authority for full legal validity and nationwide acceptance.

FAQ

1. What is the difference between DSC signature and encryption?

A Signing DSC verifies identity and ensures the document is authentic and tamper-proof.

An Encryption DSC protects confidential data by converting it into an unreadable form so only the intended recipient can decrypt it.

2. What are the three types of encryption?

The commonly recognised encryption types are:

Symmetric Encryption – Same key for encryption and decryption.

Asymmetric Encryption – Public key encrypts, private key decrypts (used in DSCs).

Hashing – One-way transformation for integrity (not reversible but used for verification).

3. What is the difference between cryptographically signed and encrypted?

Cryptographic Signing proves who sent the data and ensures it wasn't altered.

Encryption hides what the data contains so that only the intended recipient can read it.

4. What is the purpose of encryption?

The purpose of encryption is to protect sensitive data from unauthorized access, ensuring that information remains private, secure, and readable only by the intended user.

5. Is there a difference in DSC Signing and Encryption price?

The difference Class 3 DSC with encryption price and the Class 3 DSC with sign price varies. Still, there is not much difference.

Pricing varies by Certifying Authority, but Capricorn CA offers competitive and affordable pricing across all DSC types.