Unit 5 IT Act

Question 1

Information Technology Act, 2000

Answer 1

 was notified on October 17, 2000.
 law that deals with cybercrime and electronic
commerce in India.
 In 1996, the United Nations Commission on International
Trade Law (UNCITRAL) adopted the model law on electronic
commerce (e-commerce) to bring uniformity in the law in
different countries.

Question 2

IT Act provisions

Answer 2

13 chapters, 94 sections
and 4 schedules

Question 3

Sections deal with certifying authorities who are
licensed to issue digital signature certificate.

Answer 3

Sections 43 to 47 provide for penalties and compensation.
 Sections 48 to 64 deals with Tribunals a appeal to high court.
 Section 65 to 79 of the act deals with offences.
 Section 80 to 94 deals with miscellaneous of the Act.

Question 4

Objectives of the IT Act

Answer 4

 Grant legal recognition to all transactions done via electronic
exchange of data or other electronic means of communication or ecommerce, in place of the earlier paper-based method of
communication.
 Give legal recognition to digital signatures for the authentication of
any information or matters requiring legal authentication
 Facilitate the electronic filing of documents with Government
agencies and also departments
 Facilitate the electronic storage of data
 Give legal sanction and also facilitate the electronic transfer of
funds between banks and financial institutions
 Grant legal recognition to bankers under the Evidence Act, 1891 and the Reserve Bank of India Act, 1934, for keeping the books of accounts in electronic form.

Question 5

Features of IT Act, 2000

Answer 5

 All electronic contracts made through secure electronic
channels are legally valid.
 Legal recognition for digital signatures.
 Security measures for electronic records and also digital
signatures are in place
 A procedure for the appointment of adjudicating officers for
holding inquiries under the Act is finalized
 Provision for establishing a Cyber Regulatory Appellant
Tribunal under the Act. Further, this tribunal will handle all
appeals made against the order of the Controller or Adjudicating Officer.
 An appeal against the order of the Cyber Appellant Tribunal is
possible only in the High Court
 Provision for the appointment of the Controller of Certifying
Authorities (CCA) to license and regulate the working of
Certifying Authorities. The Controller to act as a repository of
all digital signatures.
 The Act applies to offences or contraventions committed
outside India
 Senior police officers and other officers can enter any public
place and search and arrest without warrant
 Provisions for the constitution of a Cyber Regulations Advisory Committee to advise the Central Government and Controller.

Question 6

Digital Signature

Answer 6

 A digital signature is exactly what it sounds like a modern
alternative to signing documents with paper and pen.
 It uses an advanced mathematical technique to check the authenticity and integrity of digital messages and documents.
 It guarantees that the contents of a message are not altered in
transit and helps us overcome the problem of impersonation
and tampering in digital communications.
 Digital signatures also provide additional information such as
the origin of the message, status, and consent by the signer.

Question 7

Electronic Governance

Answer 7

 It is the use of electronic means, to promote good governance.
 It connotes the implementation of information technology in
the government processes and functions so as to cause simple,
moral, accountable and transparent governance.
 It entails the access and delivery of government services, dissemination of information, communication in a quick and efficient manner.

Question 8

Benefits of E- governance

Answer 8

 Reduced corruption
 High transparency
 Increased convenience
 Growth in GDP
 Direct participation of constituents
 Reduction in overall cost.
 Expanded reach of government

Question 9

Types of Interactions in E - Governance

Answer 9

G2G (Government to Government)
G2C (Government to Citizen)
G2B (Government to Business)
G2E (Government to Employees)

Question 10

G2G (Government to Government)

Answer 10

• When the exchange of
  information and services is within the periphery of the
  government, is termed as G2G interaction.
• This can be both
  horizontal, i.e. among various government entities and vertical,
  i.e. between national, state and local government entities and
  within different levels of the entity.

Question 11

G2C (Government to Citizen)

Answer 11

• The interaction amidst the
  government and general public is G2C interaction.
• Here an interface is set up between government and citizens, which enables citizens to get access to wide variety of public services.
• The citizens has the freedom to share their views and grievances
  on government policies anytime, anywhere.

Question 12

G2B (Government to Business)

Answer 12

• In this case, the e-governance
  helps the business class to interact with the government
  seamlessly.
• It aims at eliminating red-tapism, saving time, cost and establish transparency in the business environment, while interacting with government.

Question 13

G2E (Government to Employees)

Answer 13

• The government of any country is the biggest employer and so it also deals with employees on a regular basis, as other employers do.
• ICT helps in making the interaction between government and employees fast and efficient, along with raising their level of satisfaction by providing perquisites and add-on benefits.

Question 14

Attribution of electronic records (Section 11)

Answer 14

An electronic records shall be attributed to the originator
A. If it was sent by the originator himself.
B. By a person who had the authority to act on behalf of the
originator in respect of that electronic record.
C. by an information system programmed by or on behalf of the
originator to operate automatically.

Question 15

For Example attribution of electronic records

Answer 15

( With respect to IT At 2000, attribution of electronic records
means fixing identity of sender and receiver. Here originator is a
person who sends or generates any electronic record. The
receiver of electronic record is termed as Addressee. If ‘X’ sends an email to ‘Y’, then ‘X’ is a sender or originator
and ‘Y’ is receiver or Addressee.
 In normal course of communication (postal communication or
paper communication), it’s very easy to identify originator and
addressee but in electronic communication it’s not the same.
 The electronic record can be sent by the originator himself or
by the person who has been authorized by the originator or by
an information system that the originator has authenticated.)

Question 16

Acknowledgement of receiving of electronic records (Section 12)

Answer 16

If the originator has not specified any specific mode of
acknowledgement (an act by the addressee that he/she has
received the electronic record), the acknowledgement can be
given by a return mail by the addressee or an automated
response by the addressee or an act by addressee that shows the
acknowledgement.

Question 17

For Example Acknowledgement of receiving of electronic records (Section 12)

Answer 17

when a person receives an email by an estate agent, for real
estate properties, the person can send a thank u mail or can send
an automatic reply or can show interest in the offer given by the
agent by visiting him. All the three option show an
acknowledgement.
 If the originator has specified a format and time period for
sending the acknowledgement, then the addressee must send
the acknowledgement in that format and within the given time
period otherwise the originator can send a notice to the
addressee stating that no acknowledgement was received.

 Where the originator has not stipulated that the electronic
record shall be binding only on receipt of such
acknowledgment, and the acknowledgment has not been
received by the originator within the time specified or agreed
or, if no time has been specified or agreed to within a
reasonable time, then the originator may give notice to the
addressee stating that no acknowledgment has been received
by him and specifying a reasonable time by which the
acknowledgment must be received by him and if no
acknowledgment is received within the aforesaid time limit he
may after giving notice to the addressee, treat the electronic
record as though it has never been sent.

Question 17

For Example Acknowledgement of receiving of electronic records (Section 12)

Answer 17

when a person receives an email by an estate agent, for real
estate properties, the person can send a thank u mail or can send
an automatic reply or can show interest in the offer given by the
agent by visiting him. All the three option show an
acknowledgement.
 If the originator has specified a format and time period for
sending the acknowledgement, then the addressee must send
the acknowledgement in that format and within the given time
period otherwise the originator can send a notice to the
addressee stating that no acknowledgement was received.

 Where the originator has not stipulated that the electronic
record shall be binding only on receipt of such
acknowledgment, and the acknowledgment has not been
received by the originator within the time specified or agreed
or, if no time has been specified or agreed to within a
reasonable time, then the originator may give notice to the
addressee stating that no acknowledgment has been received
by him and specifying a reasonable time by which the
acknowledgment must be received by him and if no
acknowledgment is received within the aforesaid time limit he
may after giving notice to the addressee, treat the electronic
record as though it has never been sent.

Question 18

Time and Place of the dispatch of an electronic record (Sec 13)

Answer 18

1. Save as otherwise agreed to between the originator and the
   addressee, the dispatch of an electronic record occurs when it
   enters a computer resource outside the control of the
   originator.
2. Save as otherwise agreed between the originator and the
   addressee, the time of receipt of an electronic record shall be
   determined as follows, namely :-
   (a) if the addressee has designated a computer resource for the
   purpose of receiving electronic records – receipt occurs at
   the time when the electronic, record enters the designated
   computer resource, or
    if the electronic record is sent to a computer resource of the
   addressee that is not the designated computer resource, receipt
   occurs at the time when the electronic record is retrieved by
   the addressee.
   (b) if the addressee has not designated a computer resource
   along with specified timings, if any, receipt occurs when the
   electronic record enters the computer resource of the addressee.
3. Save as otherwise agreed to between the originator and the
   addressee, an electronic record is deemed to be dispatched at the
   place where the originator has his place of business, and is
   deemed to be received at the place where the addressee has his
   place of business.
4. The provisions of sub-section (2) shall apply notwithstanding
   that the place where the computer resource is located may be
   different from the place where the electronic record is deemed to
   have been received under sub-section (3).
5. For the purposes of this section –
   if the originator or the addressee has more than one place of
   business, the principal place of business, shall be the place of
   business.
   if the originator or the addressee does not have a place of
   business, his usual place of residence shall be deemed to be the
   place of business.
   “usual place of residence”, in relation to a body corporate,
   means the place where it is registered.

Question 19

Example Time and Place of the dispatch of an electronic record (Sec 13)

Answer 19

(This section states that when a person sends an electronic
record from his computer then that particular time becomes the
time of dispatch.
For example
If Mr. X composes an email at 3.30 am and presses the “Send”
button at 4.30 am then time of dispatch will be 4.30 am. because
after pressing send button the sender cannot make any changes
to the record.)

Question 20

Secure electronic record

Answer 20

Where any security procedure has been applied to an electronic record at a
specific point of time. then such record shall be deemed to be a secure electronic
record from such point of time to the time of verification.

Question 21

Secure digital signature.

Answer 21

If, by application of a security procedure agreed to by the parties concerned, it can
be verified that a digital signature, at the time it was affixed, was-
 unique to the subscriber affixing it.
 capable of identifying such subscriber.
 created in a manner or using a means under the exclusive control of the
subscriber and is linked to the electronic record to which it relates in such a manner that if the electronic record was altered the digital signature would be invalidated.
then such digital signature shall be deemed to be a secure digital signature

Question 22

Security procedure.

Answer 22

Security procedure.
The Central Government shall for the purposes of this Act
prescribe the security procedure having regard to commercial
circumstances prevailing at the time when the procedure was used,
including-
 the nature of the transaction.
 the level of sophistication of the parties with reference to their
technological capacity.
 the volume of similar transactions engaged in by other parties.
 the availability of alternatives offered to but rejected by any
party.
 the cost of alternative procedures, and
 the procedures in general use for similar types of transactions or
communications.

Question 23

Digital Signature Certificate

Answer 23

 A Digital Signature Certificate is a secure digital key that is
issued by the certifying authorities for the purpose of
validating and certifying the identity of the person holding this
certificate. Digital Signatures make use of the public key
encryptions to create the signatures.
 A digital signature certificate (DSC) contains information
about the user’s name, pin code, country, email address, date
of issuance of certificate and name of the certifying authority.

Question 24

Benefits of Digital Signatures

Answer 24

 Digital Signature Certificates are helpful in authenticating the personal
information details of the individual holder when conducting business
online.
 Reduced cost and time: Instead of signing the hard copy documents
physically and scanning them to send them via e-mail, you can digitally
sign the PDF files and send them much more quickly.
 The Digital Signature certificate holder does not have to be physically
present to conduct or authorize a business
 Data integrity: Documents that are signed digitally cannot be altered
or edited after signing, which makes the data safe and secure.
 The government agencies often ask for these certificates to cross-check
and verify the business transaction
 Authenticity of documents: Digitally signed documents give
confidence to the receiver to be assured of the signer’s authenticity.
They can take action on the basis of such documents without getting
worried about the documents being forged.

Question 25

Penalties under IT Act 2000

Answer 25

43. 44, 66D, 66E, 66F, 65, 66B, 66C

Question 26

Section 43

Answer 26

Where a person without the permission of owner or
any other person-in-charge damage the Computer, or Computer
System, or Computer Network, the he shall be liable for Penalty
and Compensation to such person so affected.

Question 27

Section 44:

Answer 27

Where a person fails to furnish any document,
return, report to the controller, or certifying authority, then he
shall be liable to pay penalty upto Rs.1,50,000/- per failure.
Further where a person fails to furnish any information, books or
other documents within time specified, then he shall be liable to
pay penalty upto Rs.5,000/- per day. Further provided that where
a person fails to maintain books of accounts or other records,
then he shall be liable to pay penalty upto Rs.10,000/- per day.

Question 28

Section 44:

Answer 28

Where a person fails to furnish any document,
return, report to the controller, or certifying authority, then he
shall be liable to pay penalty upto Rs.1,50,000/- per failure.
Further where a person fails to furnish any information, books or
other documents within time specified, then he shall be liable to
pay penalty upto Rs.5,000/- per day. Further provided that where
a person fails to maintain books of accounts or other records,
then he shall be liable to pay penalty upto Rs.10,000/- per day.

Question 29

Section 66D:

Answer 29

Any person dishonestly, or fraudulently by
means of any communication device or computer resource
cheats by personating, then he shall be liable to pay penalty
upto Rs.1,00,000/-, or Imprisonment upto 3 years, or both.

Question 30

Section 66E

Answer 30

Any person intentionally captures, publishes, or
transmits image of private area of any person without consent,
then he shall be liable to pay penalty upto Rs.2,00,000/-, or
Imprisonment upto 3 years, or both.

Question 31

Section 66F

Answer 31

Any person does any act electronically, or with
use of computer with intent to threaten unity, integrity,
security, or sovereignty of India, then he shall punishable
with Imprisonment for Life.

Question 32

Section 65:

Answer 32

Any person tamper, conceal, destroy, or alter any computer
source document intentionally, then he shall be liable to pay penalty
upto Rs.2,00,000/-, or Imprisonment upto 3 years, or both.

Question 33

Section 66:

Answer 33

Any person dishonestly, or fraudulently does any act as
referred in Section 43, then he shall be liable to pay penalty
upto Rs.5,00,000/-, or Imprisonment upto 3 years, or both.

Question 34

Section 66B:

Answer 34

Any person dishonestly, or fraudulently receives or retains
any stolen computer resource or communication device, then he shall be
liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 3 years,
or both.

Question 35

Section 66C:

Answer 35

Any person dishonestly, or fraudulently make use of
Electronic Signature, Password or any other Unique Identification
Feature of any other person, then he shall be liable to pay penalty
upto Rs.1,00,000/-, or Imprisonment upto 3 years, or both.