Section 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 1 of the Information Technology Act, 2000 names the Act, says where it applies, explains how it was brought into force and, in sub-sections (4) and (5), takes five kinds of document and transaction outside it altogether. Anyone who relies on an electronic record or an electronic signature should read this section first, because it tells you when the Act does not help you.
The Act extends to the whole of India and, save as otherwise provided in it, also applies to an offence or contravention committed outside India by any person. It does not apply to the documents and transactions listed in the First Schedule: a negotiable instrument other than a cheque, a power-of-attorney, a trust, a will and a contract for the sale or conveyance of immovable property. The Central Government may add or delete entries by notification, so the Schedule must always be checked.
Source and scope of this article
This article follows the consolidated text consulted (the Act as amended by the Information Technology (Amendment) Act, 2008). Later amendments and the current position of the provision should be checked before you act. The sub-sections below are explained one by one, in the order in which the section prints them. If a document of yours may sit on the excluded list, a short legal consultation before you rely on it is sensible.
Sub-section (1): the short title
Sub-section (1) says the Act "may be called The Information Technology Act, 2000". After this first mention we call it the IT Act or the Act. It has nothing to do with income-tax law, even though the abbreviation looks familiar; for tax questions see our income-tax guides.
Sub-section (2): extent and reach outside India
Sub-section (2) has two limbs:
- The Act "shall extend to the whole of India".
- "Save as otherwise provided in this Act, it applies also to any offence or contravention thereunder committed outside India by any person."
The second limb matters most to online businesses. The words are "any offence or contravention" and "any person", so the text does not limit the reach to Indian citizens or to persons resident in India. The section does not say how that reach is to be enforced and neither does it say what links to India are needed; the text is silent on both points. Section 75 of the Act deals with the subject separately and is explained in our article on sections 75 to 77, offences outside India and confiscation.
Sub-section (3): commencement by notification
Sub-section (3) says the Act "shall come into force on such date as the Central Government may, by notification, appoint". Different dates may be appointed for different provisions, and a reference in any provision to the commencement of the Act is to be read as a reference to the commencement of that provision. The header of the consolidated copy prints "Brought into force on 17.10.2000 vide G.S.R. 788(E), dated 17.10.2000". The same copy prints the amendments made by the Information Technology (Amendment) Act, 2008 as "w.e.f. 27-10-2009" where it records omitted sections. Nothing more about commencement is stated in the sources used here.
Sub-section (4): documents and transactions outside the Act
Sub-section (4) says "Nothing in this Act shall apply to documents or transactions specified in the First Schedule". It adds a proviso: the Central Government may, by notification in the Official Gazette, amend the First Schedule by way of addition or deletion of entries. Sub-section (5) requires every notification issued under sub-section (4) to be laid before each House of Parliament.
The exclusion is wide. The words "nothing in this Act" mean that the legal recognition given to electronic records and electronic signatures by the Act (see our articles on section 4 and section 5) does not reach the listed documents.
The First Schedule as printed
The copy prints the heading "Documents or transactions to which the Act shall not apply" with five entries:
| No. | Entry as printed |
|---|---|
| 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 1-A 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 |
These references are quoted as printed in the copy. Readers should check the current procedural, penal or other law for the corresponding provision of each named Act, and should also check the current First Schedule, because sub-section (4) lets the Central Government change the list and no notification is in the sources used for this article.
Two points of reading are worth noting. First, entry 1 carves the cheque back out of the exclusion: a cheque is not excluded, while other negotiable instruments are. Our post on the cheque, truncated cheque and electronic cheque explains that instrument under its own Act. Second, entry 2 prints "section 1-A" with a hyphen, which is how the copy prints it; we keep it unchanged.
Wills and property contracts in practice
Entry 4 is the reason people ask whether an online or video-recorded will can be relied on. The entry covers a will "including any other testamentary disposition by whatever name called". The Information Technology Act, 2000 therefore does not give legal recognition to such a document. Our post on digital wills and video-recorded wills looks at the subject from the wills side.
A short example with invented names. Kaveri Textiles Private Limited signs an e-mail supply agreement with Orion Dyes and also executes a trust deed and a contract to buy a factory plot, all by electronic signature. The supply agreement is the kind of record the Act is meant to recognise. The trust (entry 3) and the contract for sale of immovable property (entry 5) are listed in the First Schedule, so the Act does not apply to them. Whether and how those two documents can be executed is a question for the laws that govern them, not for this Act.
A background sentence
The copy also prints the Statement of Object and Reasons of the Act. It records that businesses and consumers are increasingly using computers to create, transmit and store information in electronic form instead of paper documents. That passage is history rather than law, but it explains why the Act is built around legal recognition of the electronic form.
What section 1 does not tell you
Section 1 gives no definitions; they are in section 2 (see our articles on section 2: computer, data, information and intermediary and section 2: digital signature and certifying authority). It prints no penalty. For the general scheme of offences and penalties, see our overview post on offences, penalties and adjudication under the Act.
Need help with electronic records and excluded documents?
If you are unsure whether a document you rely on falls inside the Act or in the First Schedule, our team can read the document with you and the current text of the Schedule. You can start with a legal consultation before you sign, store or enforce it.
Key takeaways
- The Act extends to the whole of India and also applies to an offence or contravention committed outside India by any person, save as otherwise provided.
- Commencement was by notification; the copy prints 17.10.2000 vide G.S.R. 788(E).
- The First Schedule excludes five kinds of document or transaction.
- A cheque is not excluded; other negotiable instruments are.
- The Central Government can add or delete entries by notification, so check the current First Schedule.
Read next
- Section 4: legal recognition of electronic records
- Sections 75 to 77: offences outside India, confiscation and other punishments
- IT Act 2000 and cybercrimes in India: key provisions, offences and amendments
- Introduction to the Negotiable Instruments Act, 1881
Disclaimer: Based on a consolidated copy of the Information Technology Act, 2000 as amended by the Information Technology (Amendment) Act, 2008, on the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 as originally notified on 25 February 2021 and on the CERT-In Directions of 28 April 2022, read with the amendments made to the Act by the Jan Vishwas (Amendment of Provisions) Act, 2023 and by section 44 of the Digital Personal Data Protection Act, 2023, as consulted on 2 October 2026. Commencement notifications, other amendments, rules, directions and the current position of each provision are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.