Skip to main content

Information Technology Act 2000

Introduction of Information Technology Act 2000

Information technology is one of the important law relating to Indian cyber laws. It had passed in Indian parliament in 2000. This act is helpful to promote business with the help of internet. It also set of rules and regulations which apply on any electronic business transaction.

Due to increasing crime in cyber space, Govt. of India understood the problems of internet user and for safeguarding the interest of internet users, this act was made.

 The following are its main objectives and scope:-

1. It is objective of I.T. Act 2000 to give legal recognition to any transaction which is done by electronic way or use of internet.

2. To give legal recognition to digital signature for accepting any agreement via computer.

3. To provide facility of filling document online relating to school admission or registration in employment exchange.

4. According to I.T. Act 2000, any company can store their data in electronic storage.

5. To stop computer crime and protect privacy of internet users.

6. To give legal recognition for keeping books of accounts by bankers and other companies in electronic form.

7. To make more power to IPO, RBI and Indian Evidence act for restricting electronic crime.


Every electronic information is under the scope of I.T. Act 2000 but following electronic transaction is not under I.T. Act 2000

1. Information technology act 2000 is not applicable on the attestation for creating trust via electronic way. Physical attestation is must.

2. I.T. Act 2000 is not applicable on the attestation for making will of any body. Physical attestation by two witnesses is must.

3. A contract of sale of any immovable property.

4. Attestation for giving power of attorney of property is not possible via electronic record.

Highlights the main chapters of I.T. Act 2000 or its main provisions:-

There are 13 chapters in law and all provision is included in this chapters.

1. Chapter II

Any contract which is done by subscriber. If he signs the electronic agreement by digital signature. Then it will be valid.

In case bank, the verification of digital signature can be on the basis of key pair.

2. Chapter III

This chapter explains the detail that all electronic records of govt. are acceptable unless any other law has any rules regarding written or printed record.

3. Chapter IV

This chapter deals with receipts or acknowledgement of any electronic record. Every electronic record has any proof that is called receipt and it should be in the hand who records electronic way.

4. Chapter V

This chapter powers to organization for securing the electronic records and secure digital signature. They can secure by applying any new verification system.

5. Chapter VI

This chapter states that govt. of India will appoint controller of certifying authorities and he will control all activities of certifying authorities.

“Certifying authority is that authority who issues digital signature certificate.”

6. Chapter VII

In this chapter powers and duties of certifying authority is given. Certifying authority will issue digital signature certification after getting Rs. 25000. If it is against public interest, then C.A. can suspend the digital signature certificate.

7. Chapter VIII

This chapter tells about the duties of subscribers regarding digital signature certificate . It is the duty of subscriber to accept that all information in digital signature certificate that is within his knowledge is true .

8. Chapter IX

If any body or group of body damages the computers , computer systems and computer networks by electronic hacking , then they are responsible to pay penalty upto Rs. 1 crore . Fore judgment this , govt. can appoint adjucating officer .

9. Chapter X

Under this chapter, cyber regulation appellate tribunal can be established. It will solve the cases relating to orders of adjudicating officers.

10. Chapter XI

For controlling cyber Crime, Govt. can appoint cyber regulation advisory committee who will check all cyber crime relating to publishing others information. If any fault is done by anybody, he will be responsible for paying Rs. 2 lakhs or he can get punishment of 3 years living in jail or both prison and penalty can be given to cyber criminal.

11. Chapter XII

Police officers have also power to investigate dangerous cyber crime under IPC 1860 , Indian Evidence Act 1872 and RBI Act 1934 .

Advantages of I.T. Act 2000

1. Helpful to promote e-commerce

• Email is valid

• Digital signature is valid.

• Payment via credit card is valid.

• Online contract is valid

Above all things validity in eye of Indian law is very necessary. After making IT act 2000 , all above things are valid and these things are very helpful to promote e-commerce in India .

2. Enhance the corporate business

After issuing digital signature, certificate by Certifying authority, now Indian corporate business can enhance.

3. Filling online forms :-

After providing facility, filling online forms for different purposes has become so easy.

4. High penalty for cyber crime

Law has power to penalize for doing any cyber crime. After making of this law, nos. of cyber crime has reduced.

Shortcoming of I.T. Act 2000

1. Infringement of copyright has not been included in this law.

2. No protection for domain names.

3. The act is not applicable on the power of attorney, trusts and will.

4. Act is silent on taxation.

5. No, provision of payment of stamp duty on electronic documents.


  1. is the legal front has any progress of dealing with the digital signatures issues? a great technology, i hope it would finally get into all our technological aspects.

  2. A very informative post.

    You have thoroughly explained what is Information Technology and its contribution and use in our society.

    Great work!


Post a Comment


Popular posts from this blog

Objective of Business Environment

Following are main objectives of business environment:
1. Knowledge of Information 
By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 
2. Basis of Decisions 
One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 
3. Helpful in making of Policies 
For making good business policies, we need to know and scan business through business environment. 
4. Technological Planning 
Today, technology is changing very fastly. 3 years ago, I have to search software for downloading …

Limitation of Business Environment Analysis

Following are main limitation of business environment analysis:

1. Unexpected and Unanticipated Events 

We can not tell unexpected and unanticipated events in business environment analysis. Sometime, business has to face unexpected happenings. So, there will no benefit of business environment in these cases.

2. No sufficient Guarantee

Business environment analyst does not give any guarantee whether all events will happen as per estimation in business environment.

3. Uncritical Faith 

Sometime data may be incorrect. So, decisions on basis of these analysis may be risky for business.

4. To much information

Sometime too much information relating to business environment analysis will create the doubt in businessmen.

Technological Environment

Definition of Technological Environment :-

“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business
 work. "