The Income Tax Department has made Aadhaar-based OTP verification mandatory for updating email ID or mobile number on the income tax e-filing portal by taxpayers.
This move is seen as an attempt to prevent unauthorised changes to one’s profile with the Income Tax Department. This will also ensure that only the rightful taxpayer can modify their contact details, effectively curbing attempts by miscreants to hijack accounts or divert communication.
Also, Aadhaar has been made mandatory for submitting PAN applications from July 1. It has become mandatory to provide Aadhaar number and get it authenticated to get a new PAN (Permanent Account Number).
Under the Central Board of Direct Taxes (CBDT) new rule, a PAN application will be considered valid only when the applicant’s Aadhaar number is registered and it is confirmed online.
Again, the aim is to make the tax system more transparent, prevent duplicate PAN and strengthen the digital ecosystem.
Until now, Aadhaar number was not mandatory for PAN applications. Any identity card along with birth certificate was enough for PAN card applications. But now the rule has been changed. So, now if you want PAN, you have to provide your Aadhaar number. Then Aadhaar has to be verified through OTP and without this, PAN will not be issued now. This process is completely available online on the e-filing portal of the Income Tax Department.
What are the rules for those who already have PAN card?
If your PAN is already made, and you have not yet linked it with Aadhaar, then you have time till 31 December 2025. If your Aadhaar-PAN is not linked by this date, your PAN will become “inoperative”. If there is a delay in linking, a fine of Rs 1,000 can also be imposed.
Why is the government making this change?
The purpose of this step is to curb tax evasion and fake PAN cards and also strengthen digital KYC. The aim is to make the process of tax filing and refund fast and secure. The change will also ensure that it advances the government’s “Digital India” and “e-governance” initiative.
According to a CBDT official, “Verification of Aadhaar-related information will ensure that a person has only one valid PAN in his name.”
