The Bill, to be taken up in the winter session of Parliament, envisages a secure regulatory environment for e-commerce by providing legal validity for internet and other electronic transactions.

It will also permit computer data as an evidence in the court, official sources said.

At present, many legal rules assume the existence of paper records and documents, signed records and original records. The law of evidence traditionally relies on paper records as well as oral testimony and all kinds of physical objects.

Internet being a complete global entity with no international borders, it was necessary to provide legal framework for issues like primary and secondary evidence, jurisdiction, origination, authentication, privacy protection, intellectual property and computer crimes. The IT Bill proposes to set up a machinery for monitoring and dealing with such issues.

The cabinet note on the Bill was first prepared last November with an aim of getting it cleared in the winter session of parliament, but political uncertainty and inter ministerial tussle pushed it aside. The Bill proposes amendments in the exisiting Acts such as Indian Evidence Act 1872, Indian Penal Code 1860, amendments to Section 2 of the Bankers Book Evidence Act and amendments of RBI Act, 1934.

It will also provide for a legal framework so that information is not denied legal effect, validity or enforceability solely on the ground that it is in the form of electronic records. It also provides, unless otherwise agreed, an acceptance of contract may be expressded by electronic means of communication.

The salient features of the bill include that no information shall be denied legal effect, validity or enforceability solely on the ground that it is in the form of an electronic record. Wherever a law presents a requirement of writing, an electronic record satsifies that requirement if the information is accessible for later reference. Similarly, where a law requires the signature, a digital signature satisfies the requirement.