Basic Statistical Return Code

Description

A Simple Guide to Understanding Basic Statistical Return (BSR) Code

In the world of big money, there are a lot of numbers and codes that help us keep track of our money and taxes. The Basic Statistical Return Code, or BSR Code, is one of the most important codes used in India's banking and tax systems.

You might have spotted a BSR code while filing returns of income and through huge payments via a bank or in any challan receipts. But, what is it, why would one need it?
Make it more easy to understand.

What is BSR Code?

The Reserve Bank of India (RBI) allots to the banks and their branches in India a 7-digit Basic Statistical Return (BSR) Code. It is mostly with the Income Tax Department to process tax payments and to keep a complete record of all the receipts and payments made through banks.

DSAs in India receive a unique BSR code through which tax payments can be deposited. The government has found it easier to collect, tabulate, and verify tax information in this way.

How the BSR Code is Structured

The structure of the BSR code is such that it always contains seven digits:
The initial three digits pertain to the bank while the final four pertain to the branch as illustrated below:

For example:
If a BSR code had seven digits as 0510034, then
051 may las well stand for the bank code i.e. SBI.
Error: The rewritten text does not convey the same meaning as the original text.

0034 identifies the bank’s branch specifically in the BSR code.

What Role Does the BSR Code Play?

Unlike the IFSC code, the BSR code is not that common in everyday use although it does play a vital role with taxes and banking, here’s how:

Tax payments

By using BSR code, the Income Tax Department can know with respect to which bank branch a particular payment has been made by an individual in case a tax payer pays his income tax through a bank.

Challan Identification Number (CIN)

Challan Identification Number (CIN) will be generated at the time of payment of taxes which includes:

BSR Code
Date of the deposit
Challan Number

So, it is easy for you to track and verify the history of your payments.

Filing TDS and Form 26AS

All the TDS deposits of Tax Deducted at Source are detailed with the BSR code in Form 26AS (Taxes paid by you). Therefore, while filing the TDS returns, the BSR code of the bank branch where the tax has been paid has to be mentioned.
RBI draws Bank information using BSR code through Basic Statistical Returns displaying “how the banks work” in India.

Where to Find the BSR Code

You may find the BSR code from any of these:
Your Tax challan receipt after payment
Form 26AS under the “Details of Tax Paid and Refund” section
The official website of the Income Tax Department

You can find it on the bank’s official website or with the branch, especially if the branch accepts direct tax payments.
On several third party banking websites displaying BSR codes.

Difference between BSR code and IFSC code

BSR code is not equal to IFSC code but people confuse between them as

Abbreviation Full Form BSR Code IFSCFull form Basic Statistical Return Code Indian Financial System CodeLength: 7 digits and 11 charactersHow to use: Used in taxation. Used for online money transferAssigne By RBIBy: RBI for all TDS returns, challans, NEFT, RTGS, and IMPS Of the three codes, then, the IFSC is about shifting money between bank accounts and the BSR is more about following and recording tax payments.

Who Should Know the BSR Code?

It’s helpful if you know the BSR code or when you might use it — and for whom, or that you are:
A taxpayer paying his taxes through a bank directly.
An accountant or CA filing income tax or TDS returns.
A business owner responsible for the deduction of tax from their employees.
An employee of the government dealing with income tax
A developer of financial software or platforms that interact with tax data

You might be asked for this information when filling out TDS returns or income tax forms:

BSR code of the bank where tax was paid.
Date of deposit of the money.
Challan number.

Combining these three pieces of information, we would be in a position to associate your payment with your PAN. Hence, we would be in a better position to ascertain whether the taxes have been rightly paid or not.

Conclusion

We don’t use BSR Code every day but it is really important at the time of filing taxes, paying TDS, and assessing how much money the government is getting from taxes. It helps to make the financial and taxation system of India quite organized, clear and accurate.
You can easily do your taxes and not mess them up if you learn what a BSR code is and how it functions and where you can locate it.

If you work in finance or with taxes, it’s a good idea to keep your BSR codes right to avoid a lot of problems down the road.