INTRODUCTION
The rapid growth of the internet and digital technology created new opportunities for
communication, business, and information sharing. However, it also led to problems like
hacking, data theft, online fraud, and misuse of information. To address these issues, the
Government of India introduced a legal framework known as the Information Technology
Act, 2000 — commonly called Cyber Law.
The IT Act, 2000 was the first law in India to give legal recognition to electronic documents,
digital signatures, and online transactions. It aimed to promote e-commerce and e-governance
while preventing cybercrimes.
With time, new forms of cybercrimes like phishing, cyber terrorism, identity theft, and child
pornography emerged. To deal with these modern challenges, the Act was amended in 2008.
The IT (Amendment) Act, 2008 strengthened the original law by adding provisions for:
1. Data protection and privacy
2. Cyber terrorism
3. Punishment for identity theft and cyberstalking
4. Liability of intermediaries like social media platforms and internet service providers.
IT ACT 2001
A legal framework proposed by the Indian Parliament, the Information Technology Act of
2000, is the primary legislation in India dealing with cybercrime and electronic commerce. It
was formulated to ensure the lawful conduct of digital transactions and the reduction of
cybercrimes, on the basis of the Model Law on electronic Commerce adopted by the United
Nations Commission on International Trade Law. This legal framework, also known as IT Act
2000, comes with 94 sections, divided into13 chapters and 4 schedules.
The bill of this law was passed in the budget by a group of Parliament members, headed by
the then Minister of Information Technology and signed by the president on 9 May 2000. It
finally came into effect on 17 October 2000, imposing restrictions on all individuals
regardless of their nationality and geographic location.
Importance of formulating IT Act 2000:
• The Act provides legal recognition to electronic records, resulting in the growth of e-
commerce and digital transactions in India.
• It has established electronic signatures as the legal equivalent of physical signatures.
• The formulation of this act has come up with the establishment of the Controller of
Certifying Authorities (CCA), a government body that is responsible for issuing and
maintaining the security of digital signatures as well as certificates.
• The Act has made it mandatory for companies to obtain consent from consumers
when it comes to collecting or using their personal information.
• With the act becoming effective, individuals have the right to seek compensation in
case of damage or misuse of their personal data by an unauthorized party.
• Through the Act, the Government of India can criminalize cybercrime, hacking and
spreading of computer viruses. The Information Technology Act 2000 also authorized the
establishment of the Appellate tribunal, specialized official body to enforce the Act.
Objectives of the IT Act,2000
• Promote efficient delivery of government services electronically or facilitate digital
transactions between firms and regular individuals
• Impose penalties upon cybercrimes like data theft, hacking, identity theft,
cyberstalking and so on, in order to create a secure cyber landscape.
• Formulate rules and regulations that monitor the cyber activity and electronic
mediums of communication and commerce.
• Promote the expansion and foster innovation and entrepreneurship in the Indian
IT/ITES sector.
Features of the IT Act 2000
• The provisions of this Act are implemented by the Central Government to regulate
electronic commerce and penalize cybercrime.
• The Act states the roles and responsibilities of intermediaries as well as conditions
under which their liability can be exempted.
• The Information Technology Act is associated with CERT-In (Indian Computer
Emergency Response Team), a nodal agency that is responsible for cybersecurity and cyber
incident response.
• The Act provides validity to electronic records and signatures in business.
• It facilitates to manage records electronically in government offices.
• The provisions of this Act provide for securing personal and sensitive information.
• It recognizes and establishes the legality of digital signatures.
IT (Amendment) Act,2008
The 2008 amendment came up with modifications to Section 66A of the IT Act, 2000. This
section outlined penalties for sharing offensive messages electronically. Indian law
strengthened the original IT Act by introducing stricter measures against growing internet
crimes like identity theft, cyber-terrorism and child pornography. Other significant changes
made to the Act by the 2008 amendment was the introduction of electronic signature to
authenticate electronic records. It provided that contracts formed through electronic means
are valid.
The amendment also provided that if any company handles sensitive personal data or
information in a negligent way which causes wrongful loss to any person, such company
should pay damages to the affected person. It provides punishments for disclosure of
information of contract terms in a breach of lawful contract.
Key Provisions and Focus Areas:
• Increased Cybersecurity:
• The amendment aimed to strengthen the security and privacy of data stored in
computer systems and networks.
• New cybercrimes:
• It introduced specific provisions to address new internet-related offences such as
cyber-terrorism and identity theft.
• Data Protection and Privacy:
• Sections 43A and 72A were introduced to hold companies accountable for protecting
sensitive data and prevent the misuse of user information.
• Definitions:
• The term “Digital Signature” was replaced with the broader term “Electronic
Signature” covering a wider range of digital authentication methods.
Difference between IT Act 2000 and IT Act 2008
The Information Technology Act 2000 was India’s first law to give legal recognition to
electronic records and digital signatures, promoting e-commerce and online communication.
However, it had limited coverage of cybercrimes. To address new challenges, the IT
(Amendment) Act 2008 was introduced. This amendment expanded the scope of the original
Act by including offences such as identity theft, phishing, cyberstalking, data theft, and cyber
terrorism. It also introduced electronic signatures, strengthened data protection (Section
43A), and defined the responsibilities of intermediaries (Section 79). In short, the 2000 Act
focused on legalizing digital transactions, while the 2008 amendment aimed to enhance
cybersecurity and prevent misuse of technology.
Conclusion
The IT Act 2000 marked a significant step in India’s journey toward a digital economy,
providing legal recognition to electronic records, digital signatures, and e-commerce
activities. However, as technology advanced, new challenges like cyber terrorism, identity
theft, and online fraud emerged, which were not adequately addressed by the 2000 Act. The
IT (Amendment) Act 2008 strengthened the legal framework by broadening the definition of
cybercrimes, introducing electronic signatures, imposing liability on intermediaries, and
emphasizing data protection. Together, both Acts reflect India’s commitment to promoting
digital growth while safeguarding users and businesses. They ensure that technological
development goes hand-in-hand with legal security, accountability, and trust in cyberspace.