How to apply for Road Tax Refund?

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How to apply for Road Tax Refund?

Relocation to a new state can be a hectic process. Individuals who own vehicles must also register their vehicles in a new state. But what about the road tax you have paid to the previous state? By registering your vehicle in a new state, you can also claim the road tax refund.

However, the proper procedure needs to be followed for the same. Here in this blog, we will learn how to get a refund for road tax online.

But before jumping on that, let's first understand what a Road Tax Refund is.

What is meant by an RTO Tax Refund?

Every vehicle owner pays road tax periodically to their regional transport authority office. It is the tax for using the public roads for driving. Individuals transferred from different states also need to pay the road tax.

However, the government has offered the flexibility to claim the RTO road tax refund in transferred vehicles from the previous state. However, to claim back road tax, proper conditions need to be met, which are listed below.

When Can the Road Tax be Refunded?

Individuals can claim car tax rebates under the following scenarios such as:

If the vehicle owner's registration certificate or RC has been denied for some reason.

If the vehicle owner has returned the taxation card with RC.

If the vehicle registration in the new state has already been completed.

A vehicle in question falls under a lower tax rate.

Lastly, if the vehicle owner has paid a tax more than their limit.

How Road Tax Refund Is Decided or Calculated?

The road tax refund of a vehicle is calculated based on the duration or period for which the owner is paying the tax. It means the time duration of the registration of the vehicle in the previous state to refund the request made. The vehicle registration and refund request dates played an essential role in road tax refunds.

Documents Required for RTO Tax Refund

Below are the documents required to claim an RTO tax refund.

Letter of request by the vehicle owner, including the bank details and address.

Duly signed RTO form 16.

Copy of new pollution under control certificate.

Copy of form 28.

Copy of Insurance.

Copy of old registration certificate or smart card.

Reception of road tax paid in the previous state.

Document to support migration from one state to another.

Copy of new registration card or smart card.

Procedure to Apply for Road Tax Refund Online

The road tax refund for vehicles can only be claimed after registering the vehicle in the new state. This procedure can be carried out online and offline. Once your vehicle is registered, you can claim the road tax refund by directly visiting the RTO office. The following procedure needs to be followed:

Step 1: After reaching the RTO office, ask officials for a form for claiming the road tax refund.

Step 2: Fill out all the road tax refund forms carefully.

Step 3: Submit all the documents to authorities with the road tax refund form.

Step 4: Authorities will examine all the documents, and once everything is okay, they will initiate the refund process.

Step 5: A road tax refund amount will be directly credited to the bank account mentioned in the request letter.

Time Duration For Claiming the Road Tax Refund

The time duration for claiming the road tax refund varies from state to state. To know the exact period, you need to visit the RTO office in your area and ask authorities about the same.

Importance of Car Insurance Policy Before Driving on Indian Road

Another vital thing vehicle owners need to remember is getting basic third-party 4 wheeler insurance since it is mandatory. There are strict guidelines to impose fines on individuals who do not have a basic car insurance policy.

Apart from the government restriction, a car policy online can benefit vehicle owners from the financial burden caused by the damage or loss of a vehicle.

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Vehicle owners must pay road tax in their respective states to use the road. However, if they transferred to a new state for any reason and have already paid the road tax in the previous state, they can claim back the road tax refund. However, it is only applied to vehicles registered under their name. Individuals using a used or second-hand vehicle can't claim the road tax refund.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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How can I get a road tax refund in India?

How can I get a road tax refund in India?


To get a road tax refund in India, you must visit the RTO office in your area and carry out the procedure suggested by the officials.

How to get a Parivahan road tax refund?


There is no online procedure to get a road tax refund. You can download the application or request from the Praivahan website, but to claim back road tax, reach out to the RTO officials in your area.

Can we cancel our car tax?


To cancel your car tax in conditions like if you have sold the vehicle to someone else or it has not been on the road, etc., you must inform authorities and carry out the procedure they suggested.