TaxTMI 
TaxTMI 
Information Technology (Amendment) Act, 2008
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....n. PART II AMENDMENTS TO THE INFORMATION TECHNOLOGY ACT, 2000 Substitution of words "digital signature" by words "electronic signature". 2. In the Information Technology Act, 2000(21 of 2000) (hereinafter in this Part referred to as the principal Act), for the words "digital signature" occurring in the Chapter, section, sub-section and clause referred to in the Table below, the words "electronic signature" shall be substituted. TABLE S.No. Chapter/section/sub-section/clause (1) clauses (d), (g), (h) and (zg) of section 2; (2) section 5 and its marginal heading; (3) marginal heading of section 6; (4) clauses (a), (b), (c) and (e) of section 10 and its marginal heading; (5) heading of Chapter V; (6) clauses (f) and (g) of section 18; (7) sub-section (2) of section 19; (8) sub-sections (/) and (2) of section 21 and its marginal heading; (9) sub-section (3) of section 25; (10) clause (c) of section 30; (11) clauses (a) and (d) of sub-section (1) and sub-section (2) of section 34; (12) heading of Chapter VII; (13) section 35 and its marginal heading; (14) section 64; (15) secti....
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....cond Schedule and includes digital signature; (tb) "Electronic Signature Certificate" means an Electronic Signature Certificate issued under section 35 and includes Digital Signature Certificate;'; (F) after clause (u), the following clause shall be inserted, namely :- '(ua) "Indian Computer Emergency Response Team" means an agency established under sub-section (1) of section 70B;'; (G) in clause (v), for the words "data, text", the words "data, message, text" shall be substituted; (H) for clause (w), the following clause shall be substituted, namely :- '(w) "intermediary", with respect to any particular electronic records, means any person who on behalf of another person receives, stores or transmits that record or provides any service with respect to that record and includes telecom service providers, network service providers, internet service providers, web- hosting service providers, search engines, online payment sites, online-auction sites, online-market places and cyber cafes;'. Amendment of heading of Chapter II. 5. In Chapter II of the principal Act, for the heading, the heading "DIGITAL SIGNATURE....
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....elivery of services to the public through electronic means authorise, by order, any service provider to set up, maintain and upgrade the computerised facilities and perform such other services as it may specify by notification in the Official Gazette. Explanation.- For the purposes of this section, service provider so authorised includes any individual, private agency, private company, partnership firm, sole proprietor firm or any such other body or agency which has been granted permission by the appropriate Government to offer services through electronic means in accordance with the policy governing such service sector. (2) The appropriate Government may also authorise any service provider authorised under sub-section (1) to collect, retain and appropriate such service charges, as may be prescribed by the appropriate Government for the purpose of providing such services, from the person availing such service. (3) Subject to the provisions of sub-section (2), the appropriate Government may authorise the service providers to collect, retain and appropriate service charges under this section notwithstanding the fact that there is no express provision under ....
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.... Security procedures and practices. 16. The Central Government may, for the purposes of sections 14 and 15, prescribe the security procedures and practices: Provided that in prescribing such security procedures and practices, the Central Government shall have regard to the commercial circumstances, nature of transactions and such other related factors as it may consider appropriate.". Amendment of section 17. 12. In section 17 of the principal Act,- (a) in sub-section (1), for the words "and Assistant Controllers", the words ", Assistant Controllers, other officers and employees" shall be substituted; and (b) in sub-section (4), for the words "and Assistant Controllers", the words ", Assistant Controllers, other officers and employees" shall be substituted.". Omission of section 20. 13. Section 20 of the principal Act shall be omitted. Amendment of section 29. 14. In section 29 of the principal Act, in sub-section (1), for the words "any contravention of the provisions of this Act, rules or regulations made thereunder", the words "any contravention of the provisions of this Chapter" shall be substituted. Amendment of secti....
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.... computer resource or diminishes its value or utility or affects it injuriously by any means; (j) steal, conceals, destroys or alters or causes any person to steal, conceal, destroy or alter any computer source code used for a computer resource with an intention to cause damage;"; (d) for the portion beginning with the words "he shall be liable to pay damages" and ending with the words "persons so affected" the following shall be substituted, namely :- "he shall be liable to pay damages by way of compensation to the person so affected"; (e) in the Explanation, after clause (iv), the following clause shall be inserted, namely :- "(v) "computer source code" means the listing of programmes, computer commands, design and layout and programme analysis of computer resource in any form.". Insertion of new section 43A. 22. After section 43 of the principal Act, the following section shall be inserted, namely :- Compensation for failure to protect data. 43A. Where a body corporate, possessing, dealing or handling any sensitive personal data or information in a computer resource which it owns, controls or operates, is negli....
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.... 48 of the principal Act, in sub-section (1), the word "Regulations" shall be omitted. Substitution of new sections for sections 49 to 52. 26. For sections 49 to 52 of the principal Act, the following sections shall be substituted, namely :- Composition of Cyber Appellate Tribunal. "49. (1) The Cyber Appellate Tribunal shall consist of a Chairperson and such number of other Members, as the Central Government may, by notification in the Official Gazette, appoint: Provided that the person appointed as the Presiding Officer of the Cyber Appellate Tribunal under the provisions of this Act immediately before the commencement of the Information Technology (Amendment) Act, 2008 shall be deemed to have been appointed as the Chairperson of the said Cyber Appellate Tribunal under the provisions of this Act as amended by the Information Technology (Amendment) Act, 2008. (2) The selection of Chairperson and Members of the Cyber Appellate Tribunal shall be made by the Central Government in consultation with the Chief Justice of India. (3) Subject to the provisions of this Act- (a) the jurisdiction, powers and authority of the Cyber App....
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....nal shall be appointed by the Central Government from amongst persons who is or has been a member of the Indian Legal Service and has held the post of Additional Secretary for a period of not less than one year or Grade I post of that Service for a period of not less than five years. Term of office, conditions of service, etc., of Chairperson and Members. 51. (1) The Chairperson or Member of the Cyber Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty-five years, whichever is earlier. (2) Before appointing any person as the Chairperson or Member of the Cyber Appellate Tribunal, the Central Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such Chairperson or Member. (3) An officer of the Central Government or State Government on his selection as the Chairperson or Member of the Cyber Appellate Tribunal, as the case may be, shall have to retire from service before joining as such Chairperson or Member. Salary, allowances and other terms and c....
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....words "Presiding Officer", the word "Chairperson" shall be substituted. Amendment of section 64. 31. In section 64 of the principal Act,- (i) for the words "penalty imposed", the words "penalty imposed or compensation awarded" shall be substituted; (ii) in the marginal heading, for the word "penalty", the words "penalty or compensation" shall be substituted. Substitution of new sections for sections 66 and 67. 32. For sections 66 and 67 of the principal Act, the following sections shall be substituted, namely :- Computer related offences. '66. If any person, dishonestly or fraudulently, does any act referred to in section 43, he shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to five lakh rupees or with both. Explanation.- For the purposes of this section,- (a) the word "dishonestly" shall have the meaning assigned to it in section 24 of the Indian Penal Code(45 of 1860.); (b) the word "fraudulently" shall have the meaning assigned to it in section 25 of the Indian Penal Code(45 of 1860.). Punishment for sending offensive messages th....
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....or violation of privacy. 66E. Whoever, intentionally or knowingly captures, publishes or transmits the image of a private area of any person without his or her consent, under circumstances violating the privacy of that person, shall be punished with imprisonment which may extend to three years or with fine not exceeding two lakh rupees, or with both. Explanation.- For the purposes of this section (a) "transmit" means to electronically send a visual image with the intent that it be viewed by a person or persons; (b) "capture", with respect to an image, means to videotape, photograph, film or record by any means; (c) "private area" means the naked or undergarment clad genitals, public area, buttocks or female breast; (d) "publishes" means reproduction in the printed or electronic form and making it available for public; (e) "under circumstances violating privacy" means circumstances in which a person can have a reasonable expectation that- (i) he or she could disrobe in privacy, without being concerned that an image of his private area was being captured; or (ii) any part of his or her private area would....
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.... to read, see or hear the matter contained or embodied in it, shall be punished on first conviction with imprisonment of either description for a term which may extend to three years and with fine which may extend to five lakh rupees and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to five years and also with fine which may extend to ten lakh rupees. Punishment for publishing or transmitting of material containing sexually explicit act, etc., in electronic form. 67A. Whoever publishes or transmits or causes to be published or transmitted in the electronic form any material which contains sexually explicit act or conduct shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with fine which may extend to ten lakh rupees and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to seven years and also with fine which may extend to ten lakh rupees. Punishment for publishing or transmitting of material depicting children in sexually explicit act, etc., in elect....
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.... section 68. 33. In section 68 of the principal Act, for sub-section (2), the following sub-section shall be substituted, namely :- "(2) Any person who intentionally or knowingly fails to comply with any order under sub-section (7) shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding two years or a fine not exceeding one lakh rupees or with both.". Substitution of new sections for section 69. 34. For section 69 of the principal Act, the following sections shall be substituted, namely :- Power to issue directions for interception or monitoring or decryption of any information through any computer resource. '69. (1) Where the Central Government or a State Government or any of its officers specially authorised by the Central Government or the State Government, as the case may be, in this behalf may, if satisfied that it is necessary or expedient so to do, in the interest of the sovereignty or integrity of India, defence of India, security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence relating to abov....
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....ment for a term which may extend to seven years and shall also be liable to fine. Power to authorise to monitor and collect traffic data or information through any computer resource for cyber security. 69B. (1) The Central Government may, to enhance cyber security and for identification, analysis and prevention of intrusion or spread of computer contaminant in the country, by notification in the Official Gazette, authorise any agency of the Government to monitor and collect traffic data or information generated, transmitted, received or stored in any computer resource. (2) The intermediary or any person in-charge or the computer resource shall, when called upon by the agency which has been authorised under sub-section (1), provide technical assistance and extend all facilities to such agency to enable online access or to secure and provide online access to the computer resource generating, transmitting, receiving or storing such traffic data or information. (3) The procedure and safeguards for monitoring and collecting traffic data or information, shall be such as may be prescribed. (4) Any intermediary who intentionally or knowingly con....
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.... (1) The Central Government shall, by notification in the Official Gazette, appoint an agency of the Government to be called the Indian Computer Emergency Response Team. (2) The Central Government shall provide the agency referred to in sub-section (1) with a Director-General and such other officers and employees as may be prescribed. (3) The salary and allowances and terms and conditions of the Director-General and other officers and employees shall be such as may be prescribed. (4) The Indian Computer Emergency Response Team shall serve as the national agency for performing the following functions in the area of cyber security,- (a) collection, analysis and dissemination of information on cyber incidents; (b) forecast and alerts of cyber security incidents; (c) emergency measures for handling cyber security incidents; (d) coordination of cyber incidents response activities; (e) issue guidelines, advisories, vulnerability notes and whitepapers relating to information security practices, procedures, preventation, response and reporting of cyber incidents; (f) such other functions relating to cyber secu....
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....ich the punishment for life or imprisonment for a term exceeding three years has been provided, under this Act: Provided that the court shall not compound such offence where the accused is, by reason of his previous conviction, liable to either enhanced punishment or to a punishment of a different kind: Provided further that the court shall not compound any offence where such offence affects the socio economic conditions of the country or has been committed against a child below the age of 18 years or a woman. (2) The person accused of an offence under this Act may file an application for compounding in the court in which offence is pending for trial and the provisions of sections 265B and 265C of the Code of Criminal Procedure, 1973(2 of 1974) shall apply. Offences with three years imprisonment to be bailable. 77B. Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), the offence punishable with imprisonment of three years and above shall be cognizable and the offence punishable with imprisonment of three years shall be bailable. Amendment of section 78. 39. In section 78 of the principal Act, for ....
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....r authority specify, by notification in the Official Gazette, any Department, body or agency of the Central Government or a State Government as an Examiner of Electronic Evidence. Explanation.- For the purposes of this section, "electronic form evidence" means any information of probative value that is either stored or transmitted in electronic form and includes computer evidence, digital audio, digital video, cell phones, digital fax machines.". Amendment of section 80. 41. In section 80 of the principal Act, in sub-section (1), for the words "Deputy Superintendent of Police", the word "Inspector" shall be substituted. Amendment of section 81. 42. In section 81 of the principal Act, the following proviso shall be inserted at the end, namely :- "Provided that nothing contained in this Act shall restrict any person from exercising any right conferred under the Copyright Act, 1957(14 of 1957) or the Patents Act, 1970(39 of 1970).". Amendment of section 82. 43. In section 82 of the principal Act,- (a) for the marginal heading, the following marginal heading shall be substituted, namely :- "Chairperson, Members, officers and employees to ....
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....ollowing clause shall be inserted, namely :- "(ca) the manner in which the authorised service provider may collect, retain and appropriate service charges under sub-section (2) of section 6A;"; (iii) for clause (e), the following clauses shall be substituted, namely :- "(e) the manner of storing and affixing electronic signature creation data under section 15; (ea) the security procedures and practices under section 16;"; (iv) in clause (f), for the words "and Assistant Controllers", the words ", Assistant Controllers, other officers and employees" shall be substituted; (v) clause (g) shall be omitted; (vi) after clause (m), the following clause shall be inserted, namely :- "(ma) the form of application and fee for issue of Electronic Signature Certificate under section 35;"; (vii) after clause (o), the following clauses shall be inserted, namely :- "(oa) the duties of subscribers under section 40A; (ob) the reasonable security practices and procedures and sensitive personal data or information under section 43A;"; (viii) in clause (r), for the words "Presiding Officer", the ....
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.... For the First Schedule and the Second Schedule to the principal Act, the following Schedules shall be substituted, namely :- "FIRST SCHEDULE [See sub-section (4) of section 1] DOCUMENTS OR TRANSACTIONS TO WHICH THE ACT SHALL NOT APPLY S.No. Description of documents or transactions 1. A negotiable instrument (other than a cheque) as defined in section 13 of the Negotiable Instruments Act, 1881(26 of 1881). 2. A power-of-attorney as defined in section 1A of the Powers-of-Attorney Act, 1882(7 of 1882). 3. A trust as defined in section 3 of the Indian Trusts Act, 1882(2 of 1882). 4. A will as defined in clause (h) of section 2 of the Indian Succession Act, 1925(39 of 1925), including any other testamentary disposition by whatever name called. 5. Any contract for the sale or conveyance of immovable property or any interest in such property. THE SECOND SCHEDULE [See sub-section (1) of section 3A] ELECTRONIC SIGNATURE OR ELECTRONIC AUTHENTICATION TECHNIQUE AND PROCEDURE SI. No. Description Procedure (1) (2) (3) &....