Taxpayers must now verify mobile and email changes using Aadhaar OTP, part of a broader effort to prevent fraud and tighten ID authentication in India’s tax system
The Income Tax Department has made Aadhaar-based OTP verification compulsory for any taxpayer seeking to modify their mobile number or email ID on the income tax e-filing portal. The measure addresses a longstanding vulnerability in the system, where users could previously update such information with limited scrutiny. Under the new rule, identity confirmation through Aadhaar-linked credentials is now required before any profile updates can be processed.
According to a senior official in the Central Board of Direct Taxes (CBDT), “Verification of Aadhaar-related information will ensure that a person has only one valid PAN in his name.” The aim is to prevent impersonation, stop duplication of PAN cards, and eliminate unauthorised changes to contact information.
The rule took effect from July 1. Aadhaar has also become mandatory for obtaining a new Permanent Account Number (PAN). Applicants must submit a registered Aadhaar number and complete online authentication as part of the PAN application. Without this, the application will not proceed.
Previously, individuals could obtain a PAN card by submitting basic identification and birth documents. That process has been discontinued. Aadhaar is now the sole mandatory proof of identity for new PAN issuance.
The new procedure is intended to increase integrity within the tax system and to reduce the likelihood of misuse of identities. Previously, unauthorised users were potentially able to gain access to taxpayer accounts, alter contact details and reroute correspondence. The implementation of OTP-based Aadhaar authentication will double up the verification process by making it difficult to commit multiple frauds without the counter-signature of the rightful account holder.
According to officials, this policy aligns with broader government initiatives such as the “Digital India” and “e-Governance” programmes, and supports recent technology-driven reforms across departments, as quoted by Financial Express.
For existing PAN holders, the government has set a deadline of December 31, 2025, to link PAN with Aadhaar. Failure to comply will result in deactivation of the PAN card, leading to restricted access to income tax filing services, refund claims, and other financial operations. In addition, a late-linking penalty of Rs 1,000 may be imposed.
Officials stated that the objective behind these policy changes is to streamline identity validation, remove duplicate or fictitious entries, and ensure stronger compliance, the report added.