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E-sign & e-stamp

Which documents cannot be e-signed in India?

Last reviewed

4 exclusions
Short answer

Under Section 1(4) and the First Schedule of the Information Technology Act, 2000, four kinds of documents cannot be executed electronically: negotiable instruments other than cheques, powers of attorney, trusts, and wills and other testamentary dispositions. Contracts for the sale or conveyance of immovable property were removed from the list by notification S.O. 4720(E) of 26 September 2022. The excluded documents still need wet-ink signatures and, where required, stamping and registration.

The law this relies on

Information Technology Act, 2000

Section 1(4) and First Schedule

Lists documents to which the Act does not apply, so they cannot be validly e-signed.

Negotiable Instruments Act, 1881

Sections 6 and 13

Defines negotiable instruments; recognises electronic and truncated cheques.

Registration Act, 1908

Sections 17, 32 and 34

Compulsory registration, presentation and appearance before the registering officer.

Explained

What exactly does the First Schedule exclude?

The IT Act does not apply to the documents listed in its First Schedule, so an electronic signature cannot make them valid. The list now covers: (1) a negotiable instrument other than a cheque, such as a promissory note or bill of exchange; (2) a power of attorney under the Powers of Attorney Act, 1882; (3) a trust under the Indian Trusts Act, 1882; and (4) a will or any other testamentary disposition. Two carve-outs apply: negotiable instruments (other than cheques) that are demand promissory notes or bills of exchange issued or endorsed in favour of entities regulated by RBI, NHB, SEBI, IRDAI or PFRDA are not excluded, and nor are powers of attorney empowering such regulated entities. A fifth entry, contracts for the sale or conveyance of immovable property, was omitted by notification S.O. 4720(E) dated 26 September 2022 (published 4 October 2022); the Central Government can amend the Schedule by notification.

Why are cheques treated differently?

Cheques were carved out of the exclusion so that electronic cheques and truncated cheques recognised under the Negotiable Instruments Act, 1881 can work. Other negotiable instruments, such as promissory notes, remain paper-based for legal validity. Lenders that take a promissory note alongside a loan agreement therefore usually still collect a physically signed note.

Does registration also stop e-signing?

Removing sale and conveyance contracts from the First Schedule means they can be e-signed under the IT Act, but documents that must be registered under the Registration Act, 1908 (for example sale deeds and leases over one year) still go through presentation (sections 32 and 32A) and appearance before the Sub-Registrar unless your state offers e-registration, and the rules on presentation and admission of execution are set by each state. Some states have introduced online or Aadhaar-authenticated registration for specific instruments, such as leave and licence agreements, so check the current state process before assuming either way.

Which documents can you e-sign?

Most commercial documents can be e-signed with a DSC or Aadhaar eSign: NDAs, service and vendor agreements, employment and offer letters, loan and facility agreements (with e-stamp where duty applies), board resolutions, consent forms, purchase orders and settlement agreements. The usual stamp-duty rules still apply to the instrument, which is why e-sign is often paired with an e-stamp certificate.

Frequently asked questions

Can a will be e-signed in India?

No. Wills and other testamentary dispositions are in the IT Act’s First Schedule. A will must be signed by hand and attested by two witnesses under the Indian Succession Act, 1925.

Can a power of attorney be e-signed?

No. A power of attorney is excluded by the First Schedule. It must be physically signed and, depending on its purpose and the state, notarised, stamped or registered.

Can a rent agreement be e-signed?

Many short-term leave and licence or rent agreements are e-signed in practice, and the IT Act no longer excludes contracts for sale or conveyance of immovable property. But a lease over one year, or one reserving a yearly rent, must still be registered under section 17 of the Registration Act, so it follows presentation and appearance rules unless your state offers e-registration.

Can a promissory note be e-signed?

No. A promissory note is a negotiable instrument other than a cheque, so it is excluded from electronic execution and needs a physical signature.

This guide is general information about Indian law, not legal advice for a specific dispute, document or jurisdiction. Laws and rules change by notification; for a decision with legal or financial consequences, consult a qualified advocate.

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