A salaried individual generally pays tax in the form of Tax Deducted at Source or TDS. This is deducted by his employer from his monthly salary.
The Income Tax Department maintains the database of the total tax paid by the taxpayer. Form 26AS (Tax Credit Statement) is the annual statement in which the details of tax credit are maintained for each taxpayer as per the database of Income-tax Department. Form 26AS will reflect the tax credit against the PAN of the tax payer.
Since Form 26AS contains such crucial information, it can be useful to you in many ways:
It facilitates view of all financial transactions involving TDS/ TCS during the relevant Financial Year at one place.
Your Form 26AS gives you details of no/ low deductions claimed by you.
It helps you locate any TDS defaults relating to all TANs associated with your PAN.
You can find any tax demand created by Income Tax Department and thus do proper follow up.
It helps in seamless processing of Income Tax Return and speedy issue of refunds.
It helps in verification of CIN (Corporate Identity Number) in non-TDS payments.
It helps in verification of refunds encashed during the year.
It helps in claim of other taxes paid by you and computation of income at the time of filing of return.
For more information on Form 26AS, watch Understanding Income Tax Form 26AS