This excerpt is taken from Sheikh Hafiz Mubashir Hussain Lahori's book Signs of the Day of Judgment in the Light of Authentic Hadith.
Sign of the Day of Judgment: Black Dye Will Be Used
عن ابن عباس رضى الله عنه قال قال رسول الله صلى الله عليه وسلم: يكون قوم آخر الزمان يخضبون بهذا السواد كحواصل الحمام لا يريحون رائحة الجنة
It is narrated from Hazrat Abdullah bin Abbas (may Allah be pleased with them) that the Messenger of Allah (peace be upon him) said: "In the last times, some people will use black dye (for hair) whose blackness will be like the chest of a black pigeon. These people will not even be able to smell the fragrance of Paradise."
Reference: Ahmad (339/1) (156/4) Abu Dawood (4212) Nasa'i (5090) Fath al-Bari by Ibn Hajar (499/6) and he said: Its chain of narration is strong ...... so it is considered a sound and correct statement (p. 38) and it was authenticated by Al-Albani in Ghaya al-Maram (84)
Benefits
(1) Using black dye is prohibited.
(2) The permissibility of black dye is actually a sign of the Day of Judgment.
(3) The one who uses black dye will not be able to smell the fragrance of Paradise, let alone enter it.
(4) This sign of the Day of Judgment has become as clear as daylight.
(5) Coloring white hair with henna, etc. is permissible, but only the use of black dye is forbidden. However, if the blackness is mixed with henna or similar substances and then used, it is permissible.
Evidence for the prohibition of black dye
Hazrat Jabir رضي الله عنه says that on the day of the Conquest of Makkah, (Abu Bakr رضي الله عنه's father) Abu Quhafa رضي الله عنه was brought. His head and beard were white like Thaghama (a plant with white flowers), so the Prophet صلی اللہ علیہ وسلم ordered: "Change this whiteness but avoid using black."
Reference: Muslim: Kitab al-Libas wal-Zeenah: Bab Istihbab Khidab al-Shayb bi Safrah aw Humrah wa Tahrimuhu bil-Sawad (79) Nasai (5091) Abu Dawood (4304) Hakim (244/3) Abdul Razzaq (154/11) Bayhaqi (310/7) Ibn Abi Shaybah (432/8)