It is correct that As per the Indian IT Act 2000, digital signature certificates are accepted at par with handwritten signatures. Any electronic document that has been digitally signed, is legally valid, and is treated at par with the physically signed paper document. Therefore, Digitally Signed Form 16 has the same legal validity as a physically signed Form 16.
For more information on Signing Form 16 with Digital Signatures, the Income Tax Circular No. 2/2007 dated 21/5/2007 can be viewed here. law.incometaxindia.gov.in/dittaxmann/circular/cir2_2007.htm
TCS FileSigner Pi provides facility to Sign Form 16 with Digital Signature Certificates, in bulk, in a very user friendly way, which are legally valid. For more infomration or free demo, you may contact ACE Technology on acetechnology.co.in or 022 - 2876 3744