The Reserve Bank of India issues the BSR Code to all Indian banks. It is a seven-digit code in which the first three digits identify the bank, and the next four digits identify the branch.
When completing TDS and TCS (Tax reduction at source and Tax collection at source) returns, BSR is utilized.
It enables the bank to preserve a record of every online tax payment made, and this record enables the income tax department to get information about payments made through banks.
It is not utilized in payment systems but rather in tax collections at both the bank and the government levels.
BSR Codes are categorized in what way?
The classification of Basic Statistical Codes is based on the general structure of the statistical reporting system envisioned by the committee, which was assigned to ensure a consistent flow of the needed data.
There are seven different sorts of bank bsr codes. The classification of Basic Statistical Codes is based on the general structure of the statistical reporting system envisioned by the committee, which was assigned to ensure a consistent flow of the needed data.
BSR 1 - Half-yearly return on advances from all branches on the last Friday of June and December. It is divided into two sections:
Part I for accounts with limits greater than Rs.10000 and Part II for accounts with limits less than Rs.10000.
BSR 2 - Return Deposits (half-yearly) from all branches on the final Fridays of June and December.
BSR 3 - Return Advances (monthly) from Head Offices on the last Friday of each month against the security of selected sensitive commodities.
BSR 4 - Return on Ownership of Bank Deposits (once every two years) from all branches on the final Friday of March (replacing the current yearly survey from head offices).
BSR 5 - Return on Bank Investments (Annual) from Head Office on the final day of March (along the lines of the Survey of Bank Investments).
BSR 6 - Debits to Deposit Accounts Survey (Quinquennial) from April to March of the year.
BSR 7 - Survey on Aggregate Deposits and Gross Bank Credit (Quarterly) by Bank Head Offices on the last Friday of June, September, and December, as well as March 31.
Where do BSR Codes appear?
BSR Codes are mostly utilized while submitting Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) filings.
This code assists banks in keeping a clear record of all online tax payments made, which are all made available to the Income Tax Department by the banks.
BSR codes are commonly seen on the following documents: In Challan Identification Number (CIN), which is unique for each challan.
In OLTAS, challan and deduct information. TDS certifications
What are the implications and benefits of BSR Codes?
Taxation: BSR codes play an important role in the Income Tax Department's project, known as OLTAS, to receive information and maintain track of records of tax paid through banks via online upload of challan data (Online Tax Accounting System).
International Taxation: International Taxation, centred on Certification work, upholds the requirement of the bank's Code through which the remittance is to be made.
This is used to monitor the flow of remittances from a resident to a foreign nation. The code becomes mandatory if the transfer is made through a Foreign Bank in India.
Benefits for Senior Persons: The BSR Code benefit enables senior citizens who were formerly employees of the Government of India to receive their pensions without a problem.
It also locates information about a certain bank branch. Pensioners must notify their bank branch and supply their Bank Account number together with the BSR Code to collect their pensions.
What is the function of the BSR Code in the CIN?
The Challan Identification Number (CIN) is a unique 20-digit identity number supplied on the Taxpayer's Counterfoil.
The BSR code in CIN is used in conjunction with the date of deposit (8 digits) and the Challan Serial Number (5 digits).
The CIN is imprinted on the acknowledgement receipt to identify the tax payment. Users must ensure that the bank stamps the CIN on the Challan.
This is significant in the context of the Income Tax Department since the challan information, including the CIN, is also posted.
This enables the government to keep track of the records related to tax payments made online through banks.
Directives/instructions for Completing the Bsr-2
- Reference Date: Indicate the date to which the return pertains in the field given.
- Name and Address: The name of the branch/office and its entire address should be clearly stated.
- Uniform Branch Code: The uniform branch code is divided into two sections, Part I and Part II, which should be specified side by side. To minimize illegibility in reporting consistent branch codes, each branch is asked to utilize a rubber stamp with Part I and Part II codes on all pages of the Return.
- Legibility: Send the original copy of the return to the Reserve Bank of India. If multiple copies must be sent, verify that all numbers and words are clear and visible, that no portion of the return is omitted or mangled, and that no figure is overwritten.
- Employment Information: All permanent and temporary full-time employees in the branch/rolls office must be reported as of the return date, including those on leave.
This should refer to the branch's real strength, not the sanctioned strength. Part-time and casual employees are not eligible.
The number of female employees per category should be recorded against item code 101. Make certain that just one figure is given for each category.
- Deposit classification by type: thoroughly read all possible categories and pick the appropriate papers for authentication.
What Is the Difference Between an Ifsc Code and a Bsr Code?
The difference between an IFSC code and a BSR code is that the former can be used in conjunction with Indian financial system codes.
The IFSC and BSR codes are used to identify a bank's branch. As a result, misunderstanding may emerge as to the difference between IFSC Code and BSR Code if they share the fundamental concept.
Not only is there a discrepancy in the number of letters used to represent the code, but they are also employed in distinct systems.
The bsr code in full form is a basic statistical return and is crucial to the bank's international transaction interaction.
Q1. What is the distinction between an IFSC code and a BSR code?
The main distinction between the IFSC code and the BSR code is that the IFSC code is 11 digits long, whereas the BSR code is just 7 digits long. However, their primary goal is to provide the bank with a distinct identity.
Q2. Are BSR numbers used to trace international payments?
Yes, BSR numbers are used to monitor international payments.
Q3. Can older persons obtain their pensions sooner if they use a BSR code?
Yes, with the use of a BSR code, older persons can get their pensions sooner.
Q4. Does the Income Tax Department collect tax information using the BSR code?
Yes, the Income Tax Department collects tax information using the BSR code.
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