What does BSR mean?
BSR Code is issued by the Reserve Bank of India to all Indian banks. It consists of seven digits code with first three digits identifying the bank and remaining four digits identifying the branch. BSR is used while filling the TDS and TCS (Tax reduction at source and Tax collected at source) returns. It helps the bank to keep record of every online payment done for tax and this record helps the income tax department to receive the information about the payments through banks. It is not used in payment systems but mainly finds use in tax receipts at banks end and at Government’s end.
How are BSR Codes classified?
Basic Statistical Codes are classified according to the overall pattern of the statistical reporting system envisaged by the committee which, taken together, was designated to provide a steady flow of the required data.
- BSR 1 – Return on Advances (half-yearly) from all branches on the last Friday of June and December. It’s in two parts – Part I for accounts with limits over Rs.10000 and Part II for accounts with limits of Rs.10000 and less.
- BSR 2 – Return Deposits (half-yearly) from all branches on the last Friday of June and December.
- BSR 3 – Return Advances (monthly) against the Security of Selected Sensitive Commodities from Head Offices on last Friday of each month.
- BSR 4 – 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.
- BSR 5 – Return on Bank Investments (annual) from Head Office (on the lines of Survey of Bank Investments) on the last day of March.
- BSR 6 – Survey on Debits to Deposits Accounts (Quin-quennial) from April to March of the year.
- BSR 7 – 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 significance and the benefits of BSR Codes?
BSR codes has a significant aid in the Income Tax Department's initiative to receive information and to keep track the records of tax paid through banks, through online upload of challan details, named as OLTAS (Online Tax Accounting System).
- International Taxation:
International Taxation, revolving around the Certification work, upholds the requirement of Code of the bank through which the remittance is to be made. This is used to track the flow of remittances made by a resident into a foreign country. If the remittance takes place through a Foreign Bank located in India, yet the code becomes compulsory.
- Benefit for Senior Citizens:
The benefit of the BSR Code assists the senior citizens in getting their pensions without any difficulty who were once the employees of Government of India. In addition, it also locates the details of a particular bank branch. In order to receive their pensions, the pensioners have to inform their bank branch and provide their Bank Account number with the BSR Code.