Withholding · Section 235 · Tax Year 2026-2027
Electricity Bill Tax Calculator
See the advance tax on your electricity bill — filers are exempt; non-filer domestic bills of Rs 25,000+ pay 7.5%.
Step by step
How electricity tax is worked out
Enter your bill amount
Your electricity bill before tax.
Confirm your filer status
Filers pay nothing; non-filers may pay 7.5% above the threshold.
See the tax withheld
Automatically calculated from your bill and status.
Check your total payable
Bill plus any tax withheld.
Reading the result
This is tax you can get back
The amount here is advance income tax collected under Section 235. It is adjustable, which means it counts against your income tax for the year rather than disappearing. If your final liability is lower than what was collected, the difference is refundable.
You claim it by filing a return and entering the electricity deductions in your tax credits, not by asking LESCO, K-Electric or IESCO for it back. The distribution company only collects; it has no mechanism to refund you.
The mistake that costs non-filers most
People assume the deduction is a penalty they simply lose. It is not — but you only recover it if you file. A non-filer paying this every month for a year and never filing has handed over money that was always claimable.
Getting on the Active Taxpayer List stops the deduction going forward. It does not retrospectively refund what was already collected; that still has to come back through a return.
Where this stops
This is one line on the bill. The rest — the energy charge, fuel price adjustment, quarterly adjustment, electricity duty, GST and the TV fee — is calculated separately and is not income tax at all.
For the whole bill rather than this one line, use the electricity bill calculator.
FAQs
Electricity tax FAQs
Do filers pay tax on their electricity bill?
Active taxpayers (filers) are exempt from this advance tax on domestic electricity connections — it is specifically aimed at encouraging non-filers to register and file.
When does the 7.5% rate apply?
For domestic non-filer connections, 7.5% advance tax applies once your monthly bill reaches Rs 25,000 or more — smaller bills are not taxed under this specific provision.
Does this apply to commercial and industrial connections?
Commercial and industrial electricity users can have different Section 235 rates and thresholds regardless of filer status — set your own rate here if that applies to you.
Is this tax adjustable?
Yes, Section 235 electricity tax is generally adjustable against your final income tax liability when filing your annual return.
Related tools
See the full cost of not filing
Electricity is just one of several transactions where filers pay less.
Open Filer vs Non-Filer Calculator