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DOUBT

INDERJEET (CWA STUDENT & SERVICE) (177 Points)

04 November 2008

HELLO FRIEND,

CAN YOU EXPLAIN THE MEANS OF MICR CODE IN ITR FOMRS OF INCOME TAXATION.

THANKS

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4 Replies

CA. Shikha (Chartered Accountant) (4143 Points)
Replied 04 November 2008

MICR stands for Magnetic ink character recoginition. The strip is basically bottom strip of cheque where information about chq no, city cide, bank code and branch code is given . This MICR code is used in RBI clearing process to identify the branch and bank for clearing processes.

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Harish Nagpal (Chartered Accountant) (94 Points)
Replied 04 November 2008

Bascially to spead up the refunds

MANISH BIJLANI (Service) (42 Points)
Replied 04 November 2008

Originally posted by :INDERJEET

WHAT IS MICR CODE

Full text of MICR code is :

MAGNETIC INK CHARACTER RECOGNITION (MICR)

In MICR technology the information is printed on the instrument with a special type of ink which is made up of magnetic material. On insertion of the instrument in the machine, the printed information is read by the machine. MICR system is beneficial as it minimizes chances of error, clearing of cheques becomes easy and transfer of funds becomes faster in order to facilitate operations.

MICR code consist of 9 digit

First three digit denotes city and are same/identical first three digit of your pin code
for example for New Delhi =110 so first three digit of MICR code of all the bank branches located in NEW delhi irrespective of bank or bank branches will be110.

4-6 digit denotes for Bank
each bank has given a three digit code,4-6 digit is= bank code eg. SBI code is "002"so 4-6 digit of MICR CODE all the the branches of SBI is "002" irrespective of location in the india.

(7-9)Last three digit denotes branch code,it is in serial wise ,means if delhi has only one branch of sbi and its MICR code will be

110(FOR CITY)

002(FOR BANK)

001(FOR BRANCH)

"110002001"

so if you are located in delhi & your client has given you a Micr code of the bank located in New Delhi ,does't begin with "110",you can easily tell him your Micr code is wrong.

HOW CAN I KNOW MY BANK BRANCH MICR CODE

1. From your bank branch
2. from your cheque book ??
3. excel work book link is given below for Micr code for allmost all the branches located in India.

from cheque book ????yes ,if your bank branch has a Micr code than it is also printed on your cheque book,check your cheque book if there is a nine digit code and first three digit of the code=first three digit of your pin code than you can have got your MICR code.

so please fill MICR code to get the income tax refund directly into bank account.

its use will increase only

MICR CODES OF BANK BRACHES IN INDIA(3.01MB)EXCEL

Micr Code in ZIP FILE(731 kb)updated 16/07/2008

CA Jimmit D Mehta (Employed) (494 Points)
Replied 09 December 2008

WHEN THE ASSESSEE HAVE PAID TAX IN EXCESS OF TAX PAYABLE IN THE PREVIOUS YEAR, THEN FOR CLAIMING REFUND MICR CODE IS REQUIRED WHICH CAN BE OBTAINED FROM THE CHEQUE.