The ordinary water and sewer bills you pay for household consumption are not directly tax-deductible from your personal income tax (like salary income). They are classified as personal living costs or service charges, not taxes. But, there are certain circumstances in which water and sewer bills are taxable.
Are Water and Sewer Bills Tax Deductible in India?
These are utility expenses, and the Income Tax Act does not allow personal living expenses such as water, electricity, or sewer bills to be deducted against your salary or other non-property income.
Personal household bills are treated as your own consumption costs and are not eligible for deduction under Sections like 80C, 80D, or others. However, in the context of income from house property (e.g., a rental property), home office, and business premises, municipal taxes paid to local authorities can be deducted while computing the taxable income.
Under the Income Tax rules, taxes levied by a local authority on a property, including municipal property tax, water tax, sewerage tax, conservancy tax, etc., may be allowed as a deduction from the Gross Annual Value of that property if they are actually paid and borne by the property owner.
You must distinguish between:
Personal water/sewer bills for your household: Not deductible against personal income tax.
Municipal taxes (including water or sewerage tax) on a rental property: Deductible when calculating income from house property, provided the owner pays them (and not the tenant).
Also, separate user charges or service fees (like actual water consumption charges billed by utilities) are not considered deductible municipal taxes for tax purposes. Only statutory levies classified as local property taxes and actually paid by the owner may qualify.
I hope you understood whether water and sewer bills are tax-deductible or not.
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Are Water And Sewer Bills Tax Deductible?
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2026-01-13T10:04:20+00:00 2026-01-30T19:09:52+00:00Comment
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