Jharkhand Road Tax

Every state in India collects road tax to fund the construction and maintenance of public roads. In Jharkhand, the Jharkhand Motor Vehicles Taxation Act, 2001, mandates that all vehicle owners pay road tax at the time of registration. The amount depends on factors such as cost, seating capacity, engine capacity, fuel type, age and vehicle type.

The state also charges a Green Tax of 10% on the total payable amount for personal vehicles over 15 years old and transport vehicles over 12 years old to promote environmental practices. Meanwhile, battery-operated vehicles receive a 25% rebate. This encourages the adoption of cleaner alternatives.

The Jharkhand government administers and collects road tax through local RTOs and you can make the payment for Jharkhand vehicle tax online. The Jharkhand vehicle tax structure supports the upkeep of the state’s transport network.

A portion of the road tax revenue enhances the nation’s transport system. This includes building new roads, upgrading existing highways to smart motorways and developing large-scale transport projects. These investments help to keep smoother, safer and more technologically advanced travel systems in Jharkhand.

Local councils also receive a share of funds from road tax or Vahan tax in Jharkhand for regional development projects, including new car parking construction, road resurfacing and maintenance and small-scale transport improvement. These projects help maintain accessibility and safety at the community level.

Under Section 39 of the Motor Vehicles Act, 1988, every car owner must pay road tax at the time of purchasing a new vehicle. This is essential to legally drive the vehicle on public roads. Also, linking road tax slabs with fuel type and vehicle category helps the adoption of EVs and regulates traffic.

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Four-Wheelers

New four-wheelers are charged based on their applicable rates. Depreciation benefits apply to older or pre-owned vehicles. This reduces the payable amount based on the vehicle’s age.

Two-Wheelers

For new two-wheelers, road tax is charged at the time of registration. For used or older vehicles, tax is calculated after accounting for depreciation. 95% of the original tax is charged for vehicles aged 1–2 years, 90% for 2–3 years, and gradually reduces to 50% for vehicles over 10 years old.

Electric Vehicles

Electric vehicles receive a 25% rebate on their total road tax liability. This incentive aims to promote eco-friendly mobility and reduce vehicular pollution across the state.

Commercial Vehicles

Tax rates for these vehicles, including trucks, buses, taxis, and goods carriers, depend on factors such as seating capacity, vehicle weight, and type of commercial usage. For these vehicles, payments are made on a quarterly or annual basis.

Re-registration After Ownership Transfer

When a vehicle is sold within Jharkhand, the road tax is recalculated based on the vehicle’s current value and age. The tax liabilities remain fair and aligned with the vehicle’s present worth.

Imported or Inter-State Vehicle Transfers

If a vehicle registered in another state is transferred to Jharkhand, you must pay the difference in road tax if the tax rate in the previous state is lower than Jharkhand’s. This ensures uniform taxation for all vehicles operating within the state.

The road tax in Jharkhand is calculated based on the vehicle category, ex-showroom price (for new registration), engine capacity, and its intended use. The state government uses these parameters to determine a tax amount.

Let us understand this with an example,

Suppose you purchase a new 150cc two-wheeler in Jharkhand with an ex-showroom price of ₹1 lakh (excluding GST).

The applicable tax rate for new two-wheelers is 7% of the cost.

• Road Tax = ₹1,00,000 × 7% = ₹7,000

You will have to pay ₹7,000 as a one-time road tax during registration.

If the same vehicle is 3 years old, depreciation applies to 90% of the tax value, so you would pay ₹6,300 instead.

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Now that the method for calculating the Jharkhand road tax is clear, the following table outlines the charge for each class of vehicle.

Road Tax for Four-Wheelers (Personal Use)

Note: An additional tax of +3% is applicable if the owner already owns another personalised vehicle. Additionally, +3% applies if the vehicle costs above ₹15 lakh (excluding GST) and the owner has no prior personalised vehicle.

Road Tax for Two-Wheelers (Personal Use)

Note: An additional tax of +3% is applicable if the owner already owns another two-wheeler or personalised vehicle.

Road Tax for Motor Vehicles (Commercial and Transport Vehicles)

Jharkhand Road Tax Online Payment Method

• Step 1: Navigate and go to the official Parivahan Sewa portal and enter your vehicle registration number.
• Step 2: From the homepage, select “Online Services”, then click on “Vehicle Related Services.” Then, choose your state (Jharkhand) from the list.
• Step 3: Enter the last five digits of your vehicle’s chassis number and click “Validate Regn_no/Chasi_no.”
• Step 4: Click “Generate OTP”, enter the OTP you get on your registered mobile number. Submit it to verify your identity.
• Step 5: You will be redirected to a new page. Enter your vehicle number, click “Get Details,” and review the displayed information.
• Step 6: Select “Calculate Tax” to view the applicable amount, then click “Pay Tax” to proceed. Choose your preferred payment method (credit card, net banking, or debit card) and complete the transaction.
• Step 7: Once you successfully pay the vehicle tax online in Jharkhand, you will be redirected to the homepage, where you can download or print your receipt for future reference.

Jharkhand Road Tax Offline Payment Method

• Step 1: Go to the nearest RTO office with all the necessary documents.
• Step 2: Collect the vehicle tax Jharkhand challan form from the RTO.
• Step 3: Fill in the required details such as owner details, registration number and vehicle information.
• Step 4: Submit the completed form and pay the applicable road tax amount at the counter. It can be either in a demand draft (DD) or cash.
• Step 5: After payment, you can collect the receipt issued by the RTO. You must keep it safely as proof of payment for future reference.

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• Registration Certificate (RC): You must submit the original or a copy of your vehicle’s registration.
• Vehicle Invoice Copy: This serves as proof of purchase showing the vehicle’s cost.
• No Objection Certificate (NOC): This document is required if the vehicle is registered in another state.
• Proof of Address: You must submit any one of the documents, such as recent utility bills, passport, ration card, Aadhaar Card, voter ID or rental agreement.
• Valid Vehicle Insurance Certificate: This is mandatory to provide when paying the road tax as per the Motor Vehicles Act.
• Form KMVT14: Applicable for out-of-state vehicles being registered in Jharkhand.

Under the Jharkhand Motor Vehicles Taxation Act, all vehicle owners must pay road tax within the specified timeframe. If you fail to do so, it attracts strict penalties and fines. This is imposed and determined by the state government. However, the fine cannot exceed 100% of the total tax due.

Here is an example:

• If your pending road tax is ₹2,500, the maximum penalty that can be charged is ₹2,500, making the total payable amount ₹5,000.

If road tax remains unpaid, the arrears tax or penalty will be recovered. The government seize and auctions the vehicle to recover dues. It will be done even if the vehicle is not in the direct possession of the defaulter.

The authorities will only release the seized vehicle when the owner provides a certificate of full payment of all outstanding taxes and penalties.

Vehicle owners can claim a refund or transfer of road tax in specific situations. If you provide valid proof and documentation, you can claim this deduction. Refunds are applicable under the following cases:

• If your vehicle is scrapped, damaged, or decommissioned before its 15-year registration validity, you can claim a refund of the remaining tax amount.
• When you shift to another state and re-register there, you can apply for a refund or adjustment of the remaining road tax paid.
• If a vehicle is sold before the expiry of its tax validity period, the owner can claim a refund for the unused period of tax.

Applying for a road tax refund is seamless and can be done by visiting your nearest RTO. Here are the steps you must follow:

• You must submit Form VT-33 at your nearest Jharkhand RTO.
• Attach the documents, such as the original road tax payment receipt, a copy of the RC, proof of vehicle scrappage or NOC certificate for inter-state transfer.
• The RTO will check and verify your documents and process your refund request.
• Once your application is approved, the refund amount will be credited directly to the bank account you submit. You will receive the amount within 30 days of submission.

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State Governments across India have made paying road tax compulsory for every automobile owner. This helps maintain and expand the state’s road network for smoother and safer travel. Every vehicle owner contributes to this system and ensures that Jharkhand’s infrastructure grows with its needs.

By having an understanding of the latest road tax rules, rates and payment options, you stay compliant and avoid unnecessary penalties. Responsible vehicle ownership is more than just driving. It also includes timely payment of taxes and maintaining the road conditions. Abiding by
these steps reflects your commitment to lawful and safe commuting in Jharkhand.

Other than paying the Jharkhand road tax on time, you need to follow other traffic rules and regulations in the state to avoid fines. One such important law is having car insurance.

To drive automobiles on Indian highways and around Jharkhand, it is mandatory to buy car insurance online, according to the 1988 Motor Vehicles Act. This category of car insurance policy extends coverage for any loss or damage incurred by a third party due to your insured car.

TATA AIG’s comprehensive four-wheeler insurance offers extensive coverage against accidental, natural and man-made damages, with customisable add-ons to suit your needs. You can compare plans on our website before you buy car insurance. Additionally, you can enjoy seamless car insurance renewal and a convenient cashless claim facility.