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Objectives of the IT Act, 2000

To provide legal recognition to electronic records

The IT Act, 2000 gives legal status to digital documents, making them equivalent to physical paper records under Indian law.

Example: Can a scanned contract sent over email be valid in a court of law?

Answer:

Yes, under the IT Act, electronic records are admissible as evidence if proper authentication is established.

To facilitate electronic commerce and trade

The Act enables business transactions to be carried out electronically, thereby encouraging e-commerce and online trade in India.

Example: Are online purchase agreements legally binding?

Answer:

Yes, electronic contracts and online agreements are legally enforceable under the IT Act.

To authenticate electronic records by means of Digital Signatures

The Act provides legal validity to digital signatures, ensuring that electronic documents are secure and tamper-proof.

Example: Is digitally signing a PDF equivalent to manually signing a printed document?

Answer:

Yes, provided the digital signature is obtained from a licensed Certifying Authority as per the Act.

To provide legal recognition for transactions carried out by means of electronic data interchange (EDI) and other means of electronic communication

The Act promotes paperless trade and official communication by recognizing EDI and similar technologies for commercial and administrative purposes.

Example: Can companies use EDI for invoicing and shipment without paper trails?

Answer:

Yes, EDI transactions are recognized under the IT Act and are legally valid when authenticated digitally.

To penalize cybercrimes

The Act defines and provides penalties for various cyber offences like hacking, identity theft, cyber terrorism, and publishing obscene material online.

Example: Is sending phishing emails punishable under the IT Act?

Answer:

Yes, phishing is considered a cybercrime under Sections 66 and 66C of the IT Act and is punishable with imprisonment and/or fines.

Applicability of the IT Act, 2000

Territorial Application (Section 1(2))

Applies to offences committed within India

The Act applies to all individuals and entities within Indian territory, including Indian citizens, companies, and organizations operating inside India.

Applies to offences committed outside India by any person

As per Section 1(2), the IT Act also has extra-territorial jurisdiction. It applies to any person outside India if the offence involves a computer, computer system or network located in India.

Example: If a hacker in another country accesses a server located in Mumbai, can Indian law take action?

Answer:

Yes, under the IT Act, action can be taken because the affected system is located in India.

Application to Electronic Records and Digital Signatures

The Act gives legal validity to electronic records and digital signatures, treating them at par with paper documents and handwritten signatures for most legal and official purposes.

Example: Can a digitally signed PDF contract be accepted in court?

Answer:

Yes, as long as the digital signature is issued by a licensed Certifying Authority and complies with IT Act provisions.

Exemptions (Section 1(4), 1(5))

Certain documents and transactions

The Act does not apply to certain types of documents and transactions listed in Sections 1(4) and 1(5), such as:

Example: Can a will be created and signed electronically?

Answer:

No, wills and testamentary instruments are expressly excluded from the scope of the IT Act.