/The Act · Chapter II · Obligations of Data Fiduciary
Section 4: Grounds for processing personal data
DPDP Act, 2023 (No. 22 of 2023). Comes into force on 13 May 2027.
- Provision
- Section 4 of The Digital Personal Data Protection Act, 2023
- Status
- Comes into force on 13 May 2027 (phase 3) G.S.R. 843(E)
- Rules made under it
- None identified
- Source
- Ministry of Law and Justice (Legislative Department) · 11 August 2023 · Official PDF
A person may process the personal data of a Data Principal only in accordance with the provisions of this Act and for a lawful purpose,—
For the purposes of this section, the expression “lawful purpose” means any purpose which is not expressly forbidden by law.
Section 4 establishes the fundamental rules for when any person or organization can process personal data under the Act. It states that the personal data of a Data Principal, which is the individual to whom the data relates, can only be processed if the processing complies with the provisions of the Act. Furthermore, the processing must always be for a lawful purpose. The section limits the processing of personal data to two specific grounds. First, data can be processed if the Data Principal has explicitly given their consent for that processing. Second, data can be processed for certain legitimate uses. These legitimate uses are specific scenarios recognized by the Act where obtaining consent is not necessary. Finally, the section provides a clear definition of what constitutes a lawful purpose. It states that a lawful purpose is any purpose that is not expressly forbidden by law. This means that as long as the reason for collecting and using the personal data is not illegal or prohibited by other legislation, it meets this requirement.
Key points
- Personal data can only be processed in accordance with the Act and for a lawful purpose [(1)].
- Processing is permitted if the Data Principal has given their consent [(1)(a)].
- Processing is also permitted for certain legitimate uses [(1)(b)].
- A lawful purpose is defined as any purpose that is not expressly forbidden by law [(2)].
Common misreadings
- One might think a lawful purpose requires a specific law authorizing the processing, but the Act clarifies it simply means the purpose must not be expressly forbidden by law.
Interpretation prepared from the official text only, 9 September 2026. The official text above prevails.
/MYND · DPDP practice
Putting this into practice?
MYND runs DPDP compliance programmes for the data that flows through HR, payroll, finance and vendor operations: readiness assessments, consent and notice design, processor contracts and breach playbooks. Tell us what you are working on and a compliance lead will reply within one working day.