Latest Income Tax Rule 2025: THIS Process Mandatory For Email ID, Mobile Number Update On e-Filing Portal

Aadhaar-based OTP authentication process to email ID or mobile number on the e-filing portal has been necessiated to prevent unauthorised changes to taxpayer profiles.

New Delhi: Taxpayers must now undergo the process Aadhaar-based OTP authentication to update their email ID or mobile number on the e-filing portal, according to the Income Tax Department. This step has been initiated by the IT department to enhance security, prevent misuse and ensure authenticity. 

Aadhaar-based OTP authentication: Why has the new rule been implemented?

The new rule aims to prevent unauthorised changes to taxpayer profiles. It ensures that only the rightful account holder can now modify the contact details on the e-filing platform. The OTP is sent only to the mobile number linked with Aadhaar. This ensures that the change in contact details can only be approved by the rightful owner of the Aadhaar.

This move is further expected to reduce the instances of account hijacking or misuse. Aadhaar is linked to a biometric identity. The OTP sent to the Aadhaar-linked mobile ensures that the change request has been made by the actual taxpayer and not a fraudster. This reduces the cases of account hijacking or misuse. 

Aadhaar mandatory for new PAN applications

Starting from July 1, the department has also made Aadhaar compulsory for new PAN applications. Applicants must complete the online OTP verification and supply their Aadhaar number. This is necessary to issue a new PAN, as in its absence, a new PAN will not be issued. In the past, taxpayers could apply for a PAN with a birth certificate or another kind of identification. However, the option has been eliminated.

Taxpayers who already have a PAN and have not linked it with Aadhaar must do so by December 31, 2025. Failure to do so will render the PAN inoperative. There could be a fine of Rs 1,000 for late linking. 

The Central Board of Direct Taxes has announced this move to prevent tax evasion and duplicate PAN cards. As part of the government’s “Digital India” initiative, this move is expected to make the tax filing and refund process more secure and transparent.