What is BSR Code: Meaning, Full Form, Benefits, Classification, and More
- Bhavika Rajput
- 18 hours ago
- 7 min read
There are more than 30 nationalised banks in India, and each one has thousands of branches nationwide. The Reserve Bank of India implemented a system based on BSR numbers to make it simple to recognise various branches. BSR codes might have appeared on TDS certificates or challans. When it comes to paying government agencies or handling tax collection, this bank's unique identification code is helpful. Let us discuss the BSR code in detail.
Table of Contents
What is a BSR Code? Meaning and Full Form
The RBI launched the Basic Statistical Return (BSR) system to make it simple to track banking activities throughout India and evaluate the industry's overall performance. It was first used in December 1972 to collect data from other Indian banks that were registered. The Reserve Bank of India (RBI) created the standardised numerical system named Basic Statistical Return (BSR) Code. All Indian banks that are registered are given this seven-digit code. It has two parts: the bank is represented by the first three numbers, and the branch is represented by the next four.
Uses of BSR Code
The Basic Statistical Return (BSR) Code has the following uses:
When filing TDS and TCS returns, it is utilised to identify banks and their respective branches. This guarantees that both individuals and corporations report their tax payments accurately.
It makes precise and effective record-keeping possible by assisting in the monitoring and reconciliation of tax payments with the appropriate banks and branches.
The code helps with the processing and verification of tax payments by uniquely identifying the bank and branch where they are placed.
As mandated by the Income Tax Department of India, it facilitates adherence to regulatory standards by offering a uniform method for reporting and monitoring tax payments.
Pension withdrawal: In order to withdraw the pension payment, a BSR code and bank account number are required for anyone using the pension facility.
Banks require a BSR code before allowing any international transaction from India.
Benefits of BSR Code
Simplifies Audits: By offering comprehensive details regarding the locations of tax payments' receipt and payment, this tool facilitates audits.
Accurate Reporting: By identifying the precise bank branch utilised, this helps guarantee that tax payments and deposits are reported accurately.
Easier Reconciliation: Assists in promptly correcting any errors by making it simpler to compare tax payments with bank records.
Easier Tax Filing: Using a unique code for every transaction simplifies the filing of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) forms.
Effective Tax Management: Assists tax authorities in monitoring tax deposits and collections from various banks and branches.
Minimises Errors: By associating transactions with particular branches, it minimises errors in tax returns and financial reporting.
BSR Code Classification
BSR 1: This code, which is reported every two years, is applicable to advances made by bank branches. To differentiate between accounts with larger and lower limits, it is separated into two sections according to the credit limits of the accounts. Accounts with limitations over Rs 10,000 are covered in Part I, and accounts with limits under Rs. 10,000 are covered in Part II.
BSR 2: Information on bank deposits that are published semi-annually comes under BSR 2. The final Fridays in June and December are when it collects data.
BSR 3: These BSR codes addresses Head Offices' monthly reporting on the progress in protecting some sensitive commodities.
BSR 4: Data collection on bank deposit ownership patterns is the core area of BSR 4, which are collected once during two months. These returns reveal trends and demographics of deposits.
BSR 5: The Head Office's yearly reporting on bank investments is covered by this code. These returns provide an annual summary of the state of investments.
BSR 6: These BSR codes are devoted to thorough five-year surveys on account debits, providing a more thorough examination of activities related to deposits over an extended time frame.
BSR 7: BSR 7 codes provide regular updates on key banking indicators and are hinged on quarterly surveys on gross bank credits and total deposits carried out by the headquarters.
BSR Codes of Leading Banks
Bank Name
| BSR Code
|
State Bank of India | 000, 002, 006, 010 |
Kotak Mahindra Bank | 018 |
Axis Bank | 636 |
Punjab National Bank | 030 |
Bank of Baroda | 020 |
ICICI Bank | 639 |
Canara Bank | 024 |
HDFC Bank | 051 |
How to Find BSR Code?
You can use the online BSR code Finder tool to determine the BSR code of a particular bank branch. You can use this tool to find the BSR code for any bank branch in India, whether it be private, public, or international. All you have to do is go to the web tool and enter information like the name of your bank, the state, the district, and, finally, the branch name.
How to Fill BSR Code While Filing ITR
Paying taxes and accurately reporting any self-assessment tax payments made are the responsibilities of taxpayers under the Indian tax system. Schedule IT of the Income Tax Return (ITR) is where this information must be revealed. Here are the steps to enter a BSR Code in an ITR:
Step 1: Pay the Tax: Get the Challan once your self-assessment tax has been calculated and paid. Important information like the Challan number, BSR Code, and payment date is included in this document.
Step 2: In the ITR Form, find Schedule IT: Go to Schedule IT, the area for reporting income tax payments, while completing your ITR.
Step 3: Enter the BSR Code Correctly: Fill in the appropriate field on the ITR form with the BSR Code from your Challan. The BSR Code guarantees that the payment is properly ascribed by identifying the bank branch where the tax was paid.
Step 4: Enter the payment date and Challan number: Enter the Challan number and payment date as indicated on the Challan, in addition to the BSR Code.
Self-Assessment Tax and BSR Code
Self-assessment of tax responsibilities is the process by which a person determines their own tax due based on their total income and applicable tax rates. The tax must be paid to the government once the tax amount has been calculated, taking into account any applicable credits like TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). Here are the steps to pay self-assessment tax and the role of BSR code involved:
Step 1: Determine Your Tax Liability: Using your income and the relevant tax rates, determine the total amount of tax owed.
Step 2: Utilise Tax Credits: Make sure to account for any tax credits or deductions, like TDS or TCS.
Step 3: Get the Tax Challan here: Get the self-assessment tax payment challan, which is used to send in the tax.
Step 4: Take note of the BSR Code and Challan Number: These details will be provided on the challan. The Challan number is a special identification for your payment, and the BSR Code indicates the bank branch where the payment was made.
BSR Code and CIN: Understanding the Connection
In India, BSR codes and CINs (Challan Identification Numbers) are directly related to tax payments. Every tax payment, including advance tax, self-assessment tax, TDS, and TCS, is uniquely identified by the CIN. It is generated upon tax payment. The CIN has the following elements:
The bank branch's BSR code where the tax is placed
The deposit date
The serial number of the challan
Thus, the first element of the CIN is the BSR code. The precise bank branch where the tax payment was made can be located using this seven-digit code. Accurately tracking and recording tax payments is essential for the income tax department.
Difference Between BSR Code and IFSC Code
However, the following table outlines the key differences between the two key codes used by the Indian banking system.
Particulars | BSR Code | IFSC |
Full Form | Basic Statistical Return. | Indian Financial System Code. |
Format | 7digits | 11 characters |
Usage | Tax-related transactions and ITR filing | Electronic or online money transfers |
Scope | Regulatory reporting and statistical analysis | Daily banking transactions |
Visibility | Not used in customer transactions. Utilised backend financial processes | Commonly found in bank passbooks and cheque leaves, and utilised in online banking |
Conclusion
For banks and taxpayers alike, the Basic Statistical Return code is a crucial identification number. Its primary function is to assist the Income Tax Department in compiling data regarding taxes paid via banks. One special code that aids in the monitoring of banking activities throughout India is the BSR (Basic Statistical Return) code. When submitting TDS or TCS returns, it is quite helpful. Retired people must also get their pensions as soon as possible.
Frequently Asked Questions
What is the BSR code of India?
The Reserve Bank of India assigns each registered bank a seven-digit code known as the BSR Code of India.
What is the full form of BSR?
Basic Statistical Return Code is the complete version of the BSR code. Every digital payment made for tax filing is tracked by this system.
How can I find the BSR code?
The BSR Code is available on:
TDS Certificates
Challan Identification Number (CIN).
OLTAS Challans
Additionally, you can do it with an online BSR Code finding tool.
How do I locate my BSR code with the CIN number?
You can use the search tools on the official income tax or bank website to find your BSR code using the CIN number. The tool will show the matching BSR code when you enter the CIN number.
How can I verify my BSR code?
Compare your BSR code with the details on your tax challan or TDS certificate to confirm it. Additionally, you can use online verification tools offered by financial institutions or get confirmation from your bank.
Is the BSR code the same for all branches?
No. A BSR code's final four digits identify the bank branch, while the first three digits identify the bank.
Where can I find the BSR code in ITR?
The BSR code is located immediately below the challan number on the right side of challan 280.
Are the BSR code and IFSC code the same?
No, they are not the same. Despite being distinct codes of the Indian banking system, they differ greatly from one another.
Is the BSR code the same as the bank branch code?
No, they are not the same. The RBI assigns the BSR code for statistical and regulatory reasons, whilst the bank uses the branch code as an internal identifier.
How do BSR Codes benefit senior citizens?
Seniors may obtain information about a particular bank branch and receive their pensions earlier thanks to BSR Codes, which also make it simpler for them to use banking services and manage their money.
How does the BSR Code assist international tax authorities?
BSR codes facilitate tax compliance and information sharing across jurisdictions by helping international tax authorities trace payments made by individuals to foreign nations.
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