Basic Statistical Returns or BSR code is a standardised numerical system used by the Reserve Bank of India (RBI) to collect the details of any bank. This code is unique to all banks registered in India and appears on tax challans and TDS certificates. Thus, filing for TDS/TCS returns becomes easier using this code.
RBI also uses this system to monitor banking operations, allowing them to evaluate the performance of the overall banking sector. The code also alerts the Income Tax Department about any online tax payments initiated through the bank.
Read on to know the meaning of BSR code, its use in banking systems, types, benefits and more.
The Basic Statistical Return (BSR) code is a 7-digit code introduced by the Reserve Bank of India in December 1972. This code includes two sets of bank details:
Hence, all registered bank branches have a unique Basic Statistical Returns code. This code also allows the Income Tax Department to access their record of online payments made towards tax filings. It’s no surprise that the BSR code has been the most useful in preventing fraud when filing for Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) returns.
Uses of BSR Codes
As stated earlier, this code allows the Income Tax Department to track the TCS and TDS returns filed by the customer. Customers can also use this code to verify their online payment made towards the tax filing. You can find the code in the following documents:
RBI classifies the Basic Statistical Return Codes into seven categories based on the types of returns as follows:
|All the advance returns made by bank branches between the last Friday of June and DecemberConsists of two parts: Part I: Transactions exceeding the limit of ₹10,000 limitPart II: Transactions below ₹10,000
|Half-yearly return deposits made to all bank branches on the last Friday of June and December
|Monthly return advances from head offices made on the last Friday of each month towards the Security of Selected Sensitive Commodities
|Return made every two months on the ownership of deposit accounts from all bank branches on the last Friday of March
|Annual return on Bank Assets claimed by the head office at the end of March
|Applies to a quinquennial (recurring every 5 years) report on debits to bank deposits between the months of April and March during a financial year
|Applies to survey on Aggregate Deposits and Gross Bank Credit initiated by bank head offices on the last Friday of June, September and December and as of March 31, done quarterly
To summarise, here are the benefits of using Basic Statistical Returns codes
BSR codes help the Tax Department receive and compile data on taxes paid through digital banking.
As per the International taxation norms, tax authorities require this code when sending money abroad. This is because it aids in creating tax remittances, which helps track international tax payments.
If a senior citizen is eligible for a pension, they must inform their bank branch to get the benefits. Providing the BSR code and account number allows authorities to locate the bank branch, helping senior citizens receive their pension quickly.
While BSR and IFSC codes help identify the bank branch, they have different purposes and representation. A BSR code is a 7-digit numeric code, but an IFSC code is an 11-character alphanumeric code. Furthermore, BSR aims to simplify the taxation process while IFSC helps identify the bank branch.
In conclusion, the Basic Statistical Return code plays a vital role in the banking system’s financial health by acting as an identification marker. Furthermore, it helps track taxpayers’ transactions when filing for taxes. Maintaining records of all payments is essential when filing taxes, helping you manage your finances.
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You can find your BSR code on the OLTAS challan or TDS certificates.
No. BSR is a 7-digit code and IFSC is an 11-character code, but they both can help identify bank branches.
BSR stands for Basic Statistical Returns.
Branch codes are the last 6 digits of an IFSC code that helps identify the bank branch for transactions. On the other hand, the Basic Statistical Returns Code allows the Income Tax Department to track the online payments made towards tax filing.