Rules & Regulations Related to Road Tax in India
- Author :
- TATA AIG Team
- Published on :
Your car is your most prized possession. You have worked hard to buy it and have, over the years, taken all due measures to keep it safe. You have secure vehicle insurance, pay your premiums in time, renew it upon expiry and do much more.
Everything you should know about road tax in India
All of this to only make sure you stay out of trouble on the road and your driving is a smooth and comfortable experience. However, an important aspect you must not forget about driving in India is the road tax. Each state and region have their respective road tax laws, in addition to those imposed by the centre. As a responsible driver, you must keep a tab of road taxes wherever you are driving.
What is road tax in India?
India is a vast country, where a large network of roads connects different cities within a state as well as different states themselves. For the construction and maintenance of these roads, the government levies a road tax on vehicles, which is payable at the time of purchase of the vehicle. It is a state-level tax, which is compulsory to be paid by an individual when purchasing a vehicle in India. Road tax varies from each state because every state has different rules and regulations regarding road tax.
Moreover, the road tax collected by the government is also used to provide people with safety and emergency services in case of a road accident. Further, road signs, traffic lights, etc., are also built through the road tax money.
Rules and regulations regarding road tax in India Road tax is levied on all vehicles in India, whether used for commercial or private purposes.
Who manages the road tax?
The road tax is primarily imposed by the state government. The State Government places road tax yearly or on the total lifetime of the vehicle. Besides, the state also charges passenger and good tax and toll tax. However, for national highways, the road tax is levied and collected by the Central Government. Apart from the road tax, the Central Government also levies customs duty, central excise, central sales tax, GST, and other additional charges as per the model and type of vehicle purchased.
Who pays the road tax?
Any individual who purchases a vehicle in India, whether it is a two-wheeler, four-wheeler or any other type of vehicle, is liable to pay a road tax. The road is charged on the ex-showroom price of the vehicle as per the following vehicle aspects:
- Seating capacity
- Engine capacity
- Fuel type
- State of registration
- Intended use of the vehicle – personal or commercial
- Class of vehicle – agricultural, industrial, two-wheeler, four-wheeler
When is road tax paid?
Generally, road tax is payable at the time of vehicle registration at the concerned RTO (Regional Transport Office). Documents required to pay road tax include the vehicle registration certificate, vehicle insurance papers, ID proof, address proof, and the invoice of the vehicle purchase. In case of re-registration, NOC from the RTO of the original state where the vehicle was first registered will also be needed.
The state government can collect the road tax all at once or charge it annually. However, if you are buying a car in a particular state and paying the road for a lifetime at once but using it permanently in another state, you would be liable to pay the road tax again. The same rules apply in the case of the sale of the vehicle in another state. The new owner is liable to pay the road tax again as per the concerned state laws.
How to pay road tax in India?
Since every state levies road tax on vehicles, the payment methods differ from one state to another. Some states might take yearly road tax while others take a lump sum at the time of vehicle registration. Typically, road tax can be paid in two different modes – online and offline.
Payment of road tax online
- Visit the Ministry of Road Transport and Highways website - https://parivahan.gov.in/parivahan/.
- Click on ‘Online Services' and then select ‘Vehicle Related Services’.
- On the new page, choose your concerned state. A new page will take you to the road and transport services website of the concerned state.
- Enter your vehicle registration number and pay the road tax.
Payment of road tax offline
To pay the road tax offline, you have to visit the state RTO and fill the forms and complete other formalities and pay the road tax.
Payment of road tax is mandatory in India, and you cannot drive a vehicle without paying road tax. Besides, it is also mandatory to have active insurance for the vehicle. You should opt for motor policy renewal if your vehicle insurance has expired. However, be careful about these car insurance companies. Get car insurance online quotes from trusted insurers like TATA AIG insurance that provide you with secure vehicle insurance in India along with motor policy renewal.
How can I check my traffic fine online in Mysore?
You can go to the Mysore state transport department website and check your traffic fine by entering your e-challan or vehicle registration number.
Can we use a car after 15 years?
As per rules, you cannot use a car after 15 years as the RC will expire in this course. However, you can opt for re-registering the old car in a new state before the RC expires.
Is there any grace period for road tax?
Road tax is payable immediately after the purchase of the car. In case of re-registration, you are given a one-month grace period from the date of moving to the new state to pay the road tax.
What are the RTO rules and regulations for driving vehicles registered in one state in another state in India?
In such a case, you will register the vehicle in the new state and also pay the road tax again. You will also need NOC from the RTO of the original state where the vehicle was first registered.