Yes, it is necessary to link your PAN card and Aadhaar card in India. The Government of India has made it mandatory to link the two identification numbers as per the Income Tax Department. The linking process is done to ensure that the PAN card is being used by the correct person and to prevent fraud.

The government has made it mandatory to link PAN with Aadhaar for the following reasons:

• To track financial transactions and prevent tax evasion
• To ensure that a person does not hold multiple PAN cards
• To verify the identity of the PAN cardholder
• To facilitate the processing of income tax returns
• To link other important financial records such as bank accounts, Demat accounts, etc. with PAN and Aadhaar.

It’s important to note that the linking process is mandatory for filing income tax returns and also for obtaining a new PAN card. If a taxpayer fails to link their PAN card with an Aadhaar card, their PAN card may be considered invalid and they may be subject to penalties.