We have already covered topics related to IFSC Codes, MICR Codes, and the like previously. However, of late we have been witnessing the popularisation of what is known as BSR Code. What are BSR Codes and what are the basic things you should know about BSR Codes? In this page, you will find all relevant information about BSR Codes.
What is BSR Code?
BSR Code, short form of Basic Statistical Return Code, is a seven-digit code provided to all the registered Indian banks by the RBI. While the first three digits identify the bank, the following four digits identifies the bank branch.
Where are BSR Codes Used?
BSR Codes are used mainly when filing Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) returns. This code help banks to keep a clear record of every online payment done towards tax, which is all made available to the Income Tax Department by the banks. BSR Codes usually appear on the following documents:
- TDS certificates.
- In OLTAS challan and deduct details.
- In Challan Identification Number (CIN), which is unique for each challan.
How BSR Codes are classified?
BSR Codes are classified as follows:
|BSR1:||Return on Advances from all branches on the last Friday of June and December. It’s divided into two parts – Part I which deals with accounts with limits more than Rs. 10,000 and Part II which deals with accounts limits of Rs.10,000 and less.|
|BSR2:||Return Deposits from all branches on the last Friday of June and December.|
|BSR3:||Return Advances against the Security of Selected Sensitive Commodities from Head Offices on last Friday of each month.|
|BSR4:||Return on Ownership of Bank Deposits (once in two years) from all branches (replacing present annual survey from head offices) on the last Friday of March.|
|BSR5:||Return on Bank Investments (annual) from Head Office (on the lines of Survey of Bank Investments) on the last day of March.|
|BSR6:||Survey on Debits to Deposits Accounts (Quinquennial) from April to March of the year.|
|BSR7:||Survey on Aggregate Deposits and Gross Bank Credit (Quarterly) by head offices of the bank as on last Friday of June, September and December, and as on March 31.|
What are the benefits of using BSR Codes?
BSR Codes come with a number of significant benefits. Some of them are:
- International Taxation:
- Helps senior citizens get their pensions sooner:
BSR codes are absolutely essential if senior citizens are looking to get their pensions without a glitch. Besides helping with the easy flow of pensions, the codes also help gather all the details of a particular bank branch. To get this benefit, though, senior citizens should inform their bank branch about the pension and provide their bank account number with the BSR code.
BSR codes are important for Income Tax Department, who use these codes to receive and gather information and records of taxes paid through banks, online upload of challan details.
International taxation norms uphold the requirement of a bank’s code through which remittances are made. Having the code, helps tax authorities track the remittances made by an individual to a foreign country. The code is compulsory if the remittance occurs through a foreign bank in India.
Difference between IFSC Code and BSR Codes:
Both IFSC codes and BSR codes are similar in the purpose they serve: they help uniquely identify the bank. The main difference between the two, however, is the number of digits used to represent the information. While IFSC codes comprise of 11 letters, BSR codes are only 7 digits in length.
To sum it up, tax filings done through banks can often get too hard to track. BSR Codes, however, come to the rescue and make the tracking process a lot more seamless and streamlined.
BSR Codes and CIN: What is the connection?
Challan Identification Number (CIN) is basically a 20-digit unique identification number that is provided on the taxpayer’s counterfoil. BSR code features in the CIN number and is used as a combination along with the date of deposit (which comes up to 8 digits) and the challan number (5 digits).