What Is BSR Code: Full Form, Uses, Classifications, Benefits

The BSR Code or Basic Statistical Return Code is a 7-digit number assigned by the Reserve Bank of India (RBI) to every bank branch in India. Each bank's BSR code helps track tax payments, TDS/TCS collections, and pension disbursements. 

Key Highlights

• Full Form: Basic Statistical Return Code
• Format: 7-digit numeric code (first 3 digits = bank ID; last 4 digits = branch ID)
• Used In: TDS/TCS challans, income tax returns, pension disbursements, and OLTAS system
• BSR Code of SBI: Usually starts with 000, 002, 006 or 010
• Applicable To: All public, private, cooperative, and foreign bank branches in India
• Common Places Found: Form 16, challan receipts, TRACES portal, and bank TDS filings

What is the BSR Code for Banks? 

BSR or Basic Statistical Return Code is a standardised numerical system introduced by the Reserve Bank of India (RBI). It is a 7-digit code allotted to all registered banks in India. 

• The first 3 digits representing the bank. 
• The subsequent 4 digits representg its branch. 
• Each branch of a bank receives a unique BSR code, which is further used while filing TDS/TCS returns. Generally, you will find this code on TDS certificates and tax challans.

The RBI has introduced the Basic Statistical Return (BSR) system for easy monitoring of banking operations across India and assess the overall performance of the banking sector. It was introduced in December 1972 to gather information from other registered banks in India.

Why is BSR Code Required? 

BSR code is required for filing Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) returns. It facilitates the maintenance of records for digital payments associated with tax filings. These records enable the Income Tax Department to access information regarding payments made through banks.

What is BSR Code Used For?

The BSR code is used for the following reasons:

• Quoting BSR code in TDS/TCS challans ensures proper tax credit to the deductor/deductee.
• It is part of the Challan Identification Number (CIN) that the tax department uses to track payments.
• Pension departments use bank BSR code along with account number to credit pensions accurately.
• It helps the Income Tax Department monitor digital payments and bank activity for compliance.

Classification of BSR Codes

BSR code comes with 7 classifications, each with its specific application. Keep reading to find out more information about its classifications. 

How to Find BSR Code? 

To find the BSR code of any bank:

• Check your TDS certificate/Form 16/Challan—the BSR code is often printed there.
• Use an online BSR code finder by entering bank name, state, district, branch name.
• Consult the CPAO/pension BSR directory for government / pension branches.
• Ask your bank branch—they maintain their 7-digit bank BSR code in internal records.

BSR Codes of Banks 

The following table outlines the first 3 digits of the BSR code for several well-known Indian banks. 

Benefits of BSR Code

There are mainly 3 benefits of BSR codes. Let us discuss each in detail. 

Tax Transactions 

The Income Tax Department depends upon BSR codes to gather information on tax transactions and to facilitate the online uploading of challan details conducted through banks.

Foreign Transactions 

The BSR codes become a mandatory requirement for banks when it comes to enabling foreign transactions from India. It assists taxation authorities with tracking remittances made by individuals to foreign countries.

Pensions 

BSR codes are also highly useful for retired individuals, ensuring they receive their pensions quickly and seamlessly.

Difference between BSR Code and IFSC Code

Both IFSC and BSR codes are unique codes of the Indian banking system. The following table outlines the key differences between the two:

What is the BSR Code for Self-Assessment Tax? 

The self-assessment tax is calculated by a taxpayer independently, using his/her total income and applicable tax rate. The calculated tax amount has to be further deposited to the government, after deducting all available tax credits such as TDS and TCS. For this, one has to download the challan and obtain the BSR code and Challan number. 

Where to Fill BSR Code in ITR? 

In India, taxpayers are not only responsible for tax payments but also for providing details of the self-assessment tax paid in Schedule IT of the Income Tax Return (ITR). Following the tax payment, individuals need to obtain a copy of the Challan and get the BSR code from it. This code must be accurately entered in the ITR Form.

Final Word

The BSR Code plays a vital role in India’s banking and tax infrastructure. It enables accurate tracking of tax deposits, TDS returns, and pension credits made through banks. Whether it’s the BSR code of SBI or any other bank branch, quoting the correct bank BSR code ensures that your tax payments and challans are properly validated by the Income Tax Department.