TDS & TCS on electricity bill

A brief summary of TDS & TCS on electricity bill being charged on consumer’s Electricity Bill in UPPCL of Uttar Pradesh

TDS on electricity bill UPPCL

Electricity interest earning on security deposit is also considered as income hence a small amount of tax has to be deducted from the collecting company hence, UPPCL deducts tax at source on earning on the interest. This income tax deduction can be shown on the annual income return.

  1. It is charged on the amount of interest of security amount.
  2. Will be charged if interest amount is >= 5000.
  3. Will be charged once in a year when interest amount getting credited to the consumer.
  4. TDS will be charged as:
    A. 10% of interest amount – if PAN is linked with account ID.
    B. 20% of interest amount – if PAN is not linked..

TCS on electricity bill UPPCL

 What is TCS (Tax Collection at Source)?

TCS is the tax on the sale of goods and services, which is to be levied on customers. Electricity is considered as “goods” and that makes the UPPCL/ electricity department, a seller of goods(electricity). This tax implementation is applicable to all sellers of goods whose annual turnover is exceeding Rs.10 crore. Hence, TCS is deducted from consumers of UPPCL, UTTAR PRADESH consumers.

  1. It will be charged if commutative bill amount exceeds 50lacs.
    Example: april bill 20lacs, may bill 25lacs (commutative 45lacs), jun – 20 lacs (commutative – 65lacs), So, TCS will be charged on 65-50=15lacs in the month of June and then it will get continue till the end of financial year.
  2. TCS could be treated as advance Tax and it will be adjustable while consumer fill income tax details at the end of FY.
  3. TCS will be charged as:
    From 1-Apr-2021
    A. If PAN is linked – 0.10%
    B. If PAN is not linked – 1%

hence this brief idea on TDS & TCS on electricity bill uppcl.

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1 thought on “TDS & TCS on electricity bill”

  1. Hi Sir,

    I have a query on this point which goes as under:

    A client receives electricity bill for Rs. 1 Cr. (Approx.) In the same invoice there is an adjustment of Rs. 0.25 Cr. (Approx.) for the power generated using Windmill / Solar.

    On what amount is the TCS required to be made. 1Cr. or 0.75 Cr.?

    My understanding says it should be on Rs. 1 Cr. Please guide.



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