Just to add another experience: I flew to Paro rather than going through the land border.
I had a valid Indian passport, so the process was fairly straightforward. Indian citizens still need an Entry Permit, even though they don't need a visa. The permit is handled through Bhutan immigration.
From what I understand, the important distinction is passport vs. visa. Indians don't need a Bhutan visa, but they do need an accepted travel document for the Entry Permit.
If your passport is expired, I wouldn't assume that the expired passport itself can be used for entry. The official information specifically refers to a valid Indian passport with at least six months' validity. The alternative is the accepted Voter ID.
I'd check the latest Bhutan immigration instructions before leaving, particularly if you're travelling with children.
I travelled to Bhutan from West Bengal by road and used my Indian Voter ID rather than my passport.
For Indian citizens, a valid Indian passport is accepted, but the Voter ID issued by the Election Commission of India is also listed as an accepted travel document. So having an expired passport does not automatically mean you cannot travel if you have the accepted Voter ID.
We crossed through the Phuentsholing side and had to obtain the Bhutan Entry Permit. It wasn't the same thing as applying for a visa. Indian tourists don't need a Bhutan visa for the trip.
I would still carry the expired passport if you have it, along with the original Voter ID and photographs. I personally prefer carrying every relevant original document when crossing an international border.
Also check the requirements shortly before travelling because immigration procedures can change. What was accepted during my trip shouldn't be treated as a guarantee for another person's case.
To travel in Bhutan for Indian citizens, you don't need a passport or visa, but you must get an entry permit, which is compulsory for all Indian nationals. You can get this entry permit from the Bhutan immigration counter when you arrive.
For the people who want to travel to Bhutan for vacation purposes, they can take some of the important documents, which are a copy of your Indian passport, your Vter ID card issued by the Election Commission of India, for the minors, birth certificate, and school identity card, and your 2 passport size coloured photos along with your accomodation details.
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One thing people sometimes miss is the requirement for children.
For an adult Indian traveller, the commonly accepted documents are a valid Indian passport or an original Voter ID issued by the Election Commission of India. For children under 18 who don't have a passport, the documentation is different.
I travelled with my daughter and carried her original birth certificate because she didn't have a passport at that time. We also carried photographs as required for the entry documentation.
So if you're travelling as a family, don't assume everyone's documents will be the same as yours.
For your particular situation, since you already have a Voter ID, I would verify the current requirement with Bhutan immigration or the Embassy of India in Thimphu before deciding whether passport renewal is necessary just for this trip.