BSR Code: Full form, uses, benefits, classification and more

  • Published on: 21 Dec 2023
BSR Code: Full form, uses, benefits, classification and more

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. 

What is a BSR Code? 

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: 

  • The first three digits represent the bank name
  • The next four digits indicate the codes of the respective bank branch

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: 

  • Online Tax Accounting System (OLTAS) challan 
  • Challan Identification Number (CIN) 
  • TDS certificates

Classifications of BSR Codes

RBI classifies the Basic Statistical Return Codes into seven categories based on the types of returns as follows:  

Code ClassificationDescription
BSR1All 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
BSR2Half-yearly return deposits made to all bank branches on the last Friday of June and December
BSR3Monthly return advances from head offices made on the last Friday of each month towards the Security of Selected Sensitive Commodities
BSR4Return made every two months on the ownership of deposit accounts from all bank branches on the last Friday of March
BSR5Annual return on Bank Assets claimed by the head office at the end of March
BSR6Applies to a quinquennial (recurring every 5 years) report on debits to bank deposits between the months of April and March during a financial year
BSR7Applies 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

Benefits of Using BSR Codes

To summarise, here are the benefits of using Basic Statistical Returns codes

  • Taxation

BSR codes help the Tax Department receive and compile data on taxes paid through digital banking. 

  • International Taxation

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. 

  • Speedy Pension 

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. 

Difference Between IFSC and BSR Codes

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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FAQs on BSR Code

How can I know the BSR code?

You can find your BSR code on the OLTAS challan or TDS certificates. 

Is the BSR code the same as the IFSC code?

No. BSR is a 7-digit code and IFSC is an 11-character code, but they both can help identify bank branches. 

What is BSR’s full form?

BSR stands for Basic Statistical Returns. 

What is the difference between a BSR code and a branch code?

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.


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