A shop paying Rs 35,000 a month in electricity has Rs 3,750.00 of income tax in every bill, so its tax certificate for the year should show Rs 45,000.00. Each month is worked out under section 235 of the Income Tax Ordinance: 10% of the bill up to Rs 20,000, then Rs 1,950 plus 12% of the amount above Rs 20,000 for a commercial connection. A home connection is taxed only when the consumer is not on the Active Taxpayers List and the bill is Rs 25,000 or more.
The electricity company's certificate lists these monthly amounts for the tax year, July to June. Enter your bills to check the total before you claim it in your return, and to see how much of it is adjustable and how much is minimum tax that cannot be refunded.
How the tax in an electricity bill is worked out
The tax is charged on the bill amount including sales tax, electricity duty and every other charge, but before the income tax line itself. The table depends on the connection type printed on your bill.
- Commercial (shops, offices): nil up to Rs 500, 10% of the whole bill up to Rs 20,000, and Rs 1,950 plus 12% of the part above Rs 20,000.
- Industrial: the same up to Rs 20,000, then Rs 1,950 plus 5% of the part above Rs 20,000.
- Domestic (homes): 7.5% of the whole bill when it is Rs 25,000 or more, and only for a consumer who is not on the Active Taxpayers List (ATL). Below Rs 25,000, or on the ATL, the tax is nil.
Rule 10 of the Tenth Schedule keeps section 235 out of the higher rates for people off the ATL, so a commercial or industrial bill carries the same tax whether you file returns or not.
Example 1: a shop, the same bill every month
A shop's bill before income tax is Rs 15,000 a month.
- Tax in each bill: Rs 15,000 × 10% = Rs 1,500.00
- Twelve bills: Rs 1,500.00 × 12 = Rs 18,000.00
- Each bill is Rs 30,000 or less, so for a shopkeeper the whole Rs 18,000.00 is minimum tax.
Example 2: a home off the ATL, summer and winter bills
A household not on the ATL pays Rs 42,000 in July, Rs 38,000 in August, Rs 30,000 in September, Rs 18,000 in October, Rs 9,000 from November to April, Rs 26,000 in May and Rs 40,000 in June.
- July: Rs 42,000 × 7.5% = Rs 3,150.00 (above Rs 30,000, adjustable)
- August: Rs 2,850.00 and June: Rs 3,000.00 (adjustable)
- September: Rs 2,250.00 and May: Rs 1,950.00 (bills of Rs 30,000 or less, minimum tax)
- October to April: nil, each bill is under Rs 25,000
- Year: Rs 13,200.00, of which Rs 9,000.00 is adjustable and Rs 4,200.00 is minimum tax.
If this household joins the ATL, its bills carry no income tax from then on.
Example 3: a factory run by a company
An industrial connection billed Rs 250,000 a month pays Rs 1,950 + 5% × (Rs 250,000 less Rs 20,000) = Rs 13,450.00 a bill, or Rs 161,400.00 a year, all adjustable because the consumer is a company.
Section 235 rates for 2026-27 (tax year 2027)
Division IV of Part IV of the First Schedule to the Income Tax Ordinance, as amended up to 30 June 2026. The gross bill is the amount before the income tax line.
| Gross monthly bill | Commercial | Industrial |
|---|---|---|
| Up to Rs 500 | Nil | Nil |
| Over Rs 500 up to Rs 20,000 | 10% of the whole bill | 10% of the whole bill |
| Over Rs 20,000 | Rs 1,950 + 12% of the amount above Rs 20,000 | Rs 1,950 + 5% of the amount above Rs 20,000 |
| Domestic monthly bill | Not on the ATL | On the ATL |
|---|---|---|
| Less than Rs 25,000 | Nil | Nil |
| Rs 25,000 or more | 7.5% of the whole bill | Nil |
Note the step at Rs 20,000: a commercial bill of exactly Rs 20,000 carries Rs 2,000.00 of tax (10% of the whole bill), while Rs 20,001 carries Rs 1,950.12. The same table applied in tax year 2026 (July 2025 to June 2026), so the calculator also works for last year's certificate.
Income tax in a bill at common amounts
Tax in one month's bill for each connection type, and the commercial total over a full year at that bill.
| Monthly bill | Commercial, Rs | Industrial, Rs | Domestic, not on ATL, Rs | Commercial, 12 months, Rs | Nature for an individual or AOP |
|---|---|---|---|---|---|
| Rs 10,000 | 1,000.00 | 1,000.00 | 0.00 | 12,000.00 | Minimum |
| Rs 20,000 | 2,000.00 | 2,000.00 | 0.00 | 24,000.00 | Minimum |
| Rs 25,000 | 2,550.00 | 2,200.00 | 1,875.00 | 30,600.00 | Minimum |
| Rs 30,000 | 3,150.00 | 2,450.00 | 2,250.00 | 37,800.00 | Minimum |
| Rs 50,000 | 5,550.00 | 3,450.00 | 3,750.00 | 66,600.00 | Adjustable |
| Rs 100,000 | 11,550.00 | 5,950.00 | 7,500.00 | 138,600.00 | Adjustable |
Rates for tax year 2027 (2026-27), in force from 1 July 2026.
Adjustable or minimum tax: what you can claim back
Section 235(4) decides how the tax counts in your return.
- Company: all of it is adjustable against the company's tax for the year.
- Individual or AOP: tax collected on a bill of up to Rs 30,000 a month (up to Rs 360,000 a year) is minimum tax. It is the least you pay on that income and no refund is allowed. Tax on a monthly bill above Rs 30,000 is adjustable.
The calculator marks each month as minimum or adjustable on that basis. Adjustable tax is set off against the tax worked out on your income; if it is more than the tax due, the excess can be claimed as a refund after filing. For a domestic consumer the tax applies only while you are off the ATL, so filing a return is the simplest way to stop it. Use the filer vs non filer page to compare what being on the ATL saves on other payments too.
A person whose income is exempt, who has paid advance tax under section 147, or whose whole income falls under the final or minimum tax regime under another section can ask the Commissioner for a certificate under section 235(3). Given to the electricity company, it stops the deduction.
How to get your tax certificate from the electricity company
The certificate (also called the tax deduction certificate or withholding tax statement) shows the income tax collected on each bill of your reference number for a tax year. Ask for it after June so all twelve months are on it. As the companies listed them on 19 October 2026:
LESCO tax certificate
On LESCO's website, open Tax Deduction Certificate under Customer Services and sign in with your customer ID and password. First-time users register on the same page. LESCO's helpline is 118.
GEPCO tax certificate
On GEPCO's website, open Customer Services, then Income Tax & GST, enter the reference number printed on your bill and press Get.
IESCO tax certificate
IESCO's helpline for customer assistance is 118 (SMS 8118), and it runs Customer Facilitation Centres. Ask there for the withholding tax certificate for your reference number and tax year.
FESCO, MEPCO and the other companies
Ask your company's customer service centre or the revenue office of your subdivision for the income tax deduction certificate. Take a recent bill so they can find your reference number. The certificate is needed only for the income tax line; the sales tax and other lines on a bill cannot be claimed in an income tax return.
When filing on IRIS, enter the amount from the certificate against section 235 (electricity bill) among the taxes collected or deducted. To estimate a coming bill itself, use the electricity bill calculator or, for a shop, the commercial electricity bill calculator. Other deductions under the same rate card are in the withholding tax calculator, and internet bills have their own ptcl tax certificate page.
Electricity bill tax questions
How is income tax on an electricity bill calculated?
Take the bill before the income tax line, including GST and other charges. For a commercial connection the tax is 10% of the whole bill up to Rs 20,000, and Rs 1,950 plus 12% of the part above Rs 20,000. Industrial is the same with 5% above Rs 20,000. A home bill is taxed at 7.5% only if it is Rs 25,000 or more and the consumer is not on the ATL. A Rs 35,000 shop bill carries Rs 3,750.00.
How do I get my GEPCO tax certificate?
Open GEPCO's website, go to Customer Services, then Income Tax & GST, enter the 14-digit reference number from your bill and press Get. Ask for the tax year you are filing, July to June. If the year you need does not show, ask at the revenue office of your GEPCO subdivision with a recent bill.
How do I download the LESCO tax certificate?
On LESCO's website open Tax Deduction Certificate under Customer Services. Sign in with your customer ID and password, or register first if you have not used it before. LESCO's helpline 118 can help if you cannot sign in. Download the certificate for the tax year you are filing: tax year 2026 covers July 2025 to June 2026.
Is the tax on my electricity bill adjustable?
For a company, yes, all of it. For an individual or AOP, tax on a monthly bill above Rs 30,000 is adjustable, while tax on bills of Rs 30,000 or less (up to Rs 360,000 a year) is minimum tax and is not refunded. A shop paying Rs 15,000 a month has Rs 18,000.00 of minimum tax in a year.
Do filers pay income tax on electricity bills?
On a home connection, no: section 235 is not collected from a domestic consumer whose name is on the Active Taxpayers List. On a commercial or industrial connection, yes: the same table applies to filers and non-filers, because rule 10 of the Tenth Schedule keeps section 235 out of the doubled non-ATL rates. A filer then claims the adjustable part in the return.
Why is there income tax on my home electricity bill?
Your bill was Rs 25,000 or more and the name on the connection is not on the ATL, so the company added 7.5% of the bill. A Rs 30,000 bill carries Rs 2,250.00. Bills below Rs 25,000 carry nothing. Once the name on the connection is on the ATL, the proviso to section 235(1) stops the tax.
Can I get a refund of the income tax on electricity bills?
Only the adjustable part. Enter it in your return as tax collected under section 235; if your total tax paid is more than the tax due on your income, claim the excess as a refund under section 170 after filing. The minimum tax part on bills of Rs 30,000 or less is not refunded, and sales tax on a bill is never claimable in an income tax return.
qaaf is not linked to FBR, LESCO, GEPCO or any electricity company. The certificate issued by your company is the final record; it may round each month's tax to the rupee. Rates are for tax year 2027 (2026-27), in force from 1 July 2026.
Last reviewed 19 October 2026. Results are estimates; official notices always take precedence.