How can claim examption in Income Tax on electricity bill?

Question

I am the Income Tax Filler and electric connection is in my name, how can claim examption in Income Tax on electricity bill?

Answer 1

Make sure that your Filer status is updated with the deparment and then you will not be charged extra taxes thereon.

Answer 2

If you are an active income tax filer (on ATL) and the electricity connection is in your name, you cannot completely stop withholding tax under Section 235 of the Income Tax Ordinance, 2001, but you can ensure it is properly adjusted. First, make sure your NTN is correctly registered with the electricity company (e.g., MEPCO, LESCO, etc.) by submitting a copy of your CNIC, NTN certificate, and latest tax return so that filer rates are applied instead of higher non-filer rates. Any tax deducted on your electricity bill can then be claimed as adjustable advance tax in your annual income tax return under the “Tax Deducted/Collected” section, where it will be credited against your final tax liability or refunded if excess. Complete exemption is generally not available unless specifically provided under law, but proper registration ensures lower deduction and full adjustment.