Cloud computing technology offers so many luxuries like low cost, ease of accessibility of resources, high performance due to which it becomes a forthcoming revolution among organizations. Organisations are still very reluctant to store their data on cloud because it shifts the organizations data on cloud which is not trustworthy. There are different types of issues like Security, Protection, Identity Management, Management of resources, Management of Power and Energy, Data Isolation, Availability of resources and Heterogeneity of resources which has been observed in cloud computing environment that need to be addressed. According to survey conducted by IDC security was found to be most challenging issue which act as an obstruction in implementation of cloud computing. Cryptographic techniques that can be used as secure storage can help cloud computing at some extent but the major disadvantage of secure storage is that we cannot perform processing on encrypted data. So, in order to provide the security to the cloud network, homomorphic encryption technique can be used. In homomorphic encryption computations can be performed on cipher text and generate an encrypted result which will be same as result of operations performed on the plaintext when decrypted. This means in homomorphic encryption we can process the data without decryption. In this paper security issue is addressed in such a way that client will encrypt password with homomorphic encryption and then server performs equality testing on encrypted data in the form of encrypted array which will be decrypted by owners of data only.