Telangana Road Tax

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Telangana Road Tax

Owning a car or motorbike is a source of great joy and freedom but also entails specific responsibilities. One of the primary responsibilities is paying the road tax. In Telangana, as in other states, road tax is levied following the 1988 Motor Vehicles Act to maintain road infrastructure and provide travellers security. This tax applies to both personal and commercial vehicles.

Therefore, if you own a vehicle in Telangana or plan to relocate there for work in the long term, it is essential to be aware of the Telangana Road Tax. Adhering to these taxation measures ensures that road infrastructure and related services are adequately funded, leading to better road conditions and enhanced transportation facilities for the residents of Telangana.

So, what exactly is road tax, and how’s it collected in Telangana? Let's look at some of the specifics of road tax Telangana! Continue reading to learn more.

A Brief about Telangana

Telangana, a state in India, offers a diverse landscape beyond the bustling city of Hyderabad. While Hyderabad is renowned for its high-rise buildings and swanky IT offices, it’s vital to note that dense forests cover more than one-fourth of the state's total area. Telangana's natural beauty goes beyond paddy fields and lush green forests, as it boasts picturesque lakes, captivating waterfalls, numerous forts, and magnificent palaces waiting to be explored.

Moreover, Telangana, the newest state with Hyderabad as its capital city, has developed an extensive network of roadways connecting different parts of the country. The metropolis of Hyderabad is home to a significant population, resulting in a substantial number of vehicles plying its roads.

Telangana RTO Tax - What You Need to Know

Telangana, the youngest state in India with Hyderabad as its capital city, boasts an extensive network of roadways spanning approximately 27,000 kilometres. This vast road network serves multiple purposes, catering to the needs of a burgeoning tech sector, accommodating increasing numbers of tourists, and supporting the thriving agricultural industry.

To ensure this infrastructure's continuous expansion and maintenance, the Telangana Transport Department collects road tax from vehicle owners in the state.

Under the Telangana Motor Vehicle Taxation Act, vehicle owners must fill out a form providing details about their vehicles and their utilisation within the state. This information enables the taxation authority to determine the appropriate road tax amount. The tax is calculated based on various factors such as the type of vehicle, engine capacity, age, and purpose of use—whether commercial or personal.

In Telangana, the cost of a new vehicle includes a lifetime road tax, which is added to the showroom price. This approach ensures that road tax revenue improves the state's roads and other infrastructure facilities. It’s important to note that the current road tax in Telangana adheres to the provisions outlined in the 1963 Andhra Pradesh Motor Vehicles Taxation Act, which was adopted by the state.

Who Levies Road Tax?

Road tax is imposed on motor vehicles used for personal and commercial purposes, encompassing two-wheelers, four-wheelers, and various other types of vehicles. The responsibility for levying road tax lies with the State and Central governments, each imposing different taxes.

  • The State Government imposes annual and lifetime motor vehicle tax, passenger and goods tax, Goods and Services Tax (GST), state Value Added Tax (VAT), and toll tax.

  • The Central Government levies taxes such as central sales tax, central excise, customs duty, and additional cess based on the vehicle type and model name.

While the construction and maintenance of national highways are primarily undertaken by the Central Government, approximately 80% of roads in all Indian states are constructed by the respective State Governments. As the State Governments bear the cost of constructing these roads, they can collect road tax from vehicle owners within their jurisdiction.

By collecting vehicle tax payment from motorists, the State Government and the Central Government aim to generate funds to support the development and maintenance of road infrastructure throughout the country.

Telangana RTO Tax Rate Calculation

Regarding road tax in Telangana, the percentage is determined by the Telangana Motor Vehicle Taxation Act, considering several factors. These factors include:

  • the vehicle's age,

  • make and manufacturer,

  • dimensions,

  • fuel type,

  • engine capacity, and

  • purpose of use.

Considering these variables, the road tax is calculated to ensure fairness and consistency across all vehicle categories.

The road tax in Telangana is assessed as a percentage of the vehicle's original cost. This approach ensures that taxation remains proportional and equitable, regardless of the type or value of the vehicle.

In addition to the one-time road tax payment, the State of Telangana has implemented a Green Tax for older vehicles. Owners of bikes and cars over 15 years old are required to pay an annual Green Tax of ₹1,000 and ₹5,000, respectively. This Green Tax Telangana aims to discourage using older, less fuel-efficient and more polluting vehicles, contributing to a greener environment.

A Green Tax of ₹7,000 is imposed annually once they surpass seven years of age for transport vehicles such as commercial trucks and buses. This tax encourages the renewal of transport vehicles, promoting the adoption of newer and more environmentally friendly models.

Telangana Road Tax for Two-Wheelers

The road tax for two-wheelers in Telangana is calculated based on the duration since the vehicle's initial registration.

The road tax for two-wheelers in Telangana is calculated based on the duration since the vehicle's initial registration.

No. of years since the two-wheeler was first registered/Vehicle's age TS Tax Payment (Percentage of the Vehicle's Original Cost)
New 9%
Not more than 2 years 8%
Between two and three years 7%
Between three and four years 6%
Between four and five years 5%
Between five and six years 4%
Between six and seven years 35%
Between seven and eight years 3%
Between eight and nine years 25%
Between nine and ten years 2%
Between ten and eleven years 15%
More than eleven years 1%

Telangana Road Tax for Three-Wheelers

The road tax for two-wheelers in Telangana is calculated based on the duration since the vehicle's initial registration. (Similar to two-wheelers)

No. of years since the three-wheeler was first registered/Vehicle's age TS Tax Payment for Three-Wheelers under ₹10 lakhs (Percentage of the Vehicle's Original Cost)
New 12%
Not more than 2 years 11%
Between two and three years 10.5%
Between three and four years 1%
Between four and five years 9.5%
Between five and six years 09%
Between six and seven years 8.5%
Between seven and eight years 08%
Between eight and nine years 7.5%
Between nine and ten years 6.5%
Between ten and eleven years 6%
More than eleven years 5.5%

Telangana Road Tax for Four-Wheelers

The road tax in Telangana for four-wheelers follows the same principle as mentioned earlier, considering the age of the vehicle. However, there is one minor difference based on the cost of the vehicle. Different taxation rates apply depending on whether the vehicle's price is below or above 10 lakhs. The tax slabs for four-wheelers in Telangana are as follows:

No. of years since the four-wheeler was first registered/Vehicle's age TS Tax Payment for Vehicles under ₹10 lakhs (Percentage of the Vehicle's Original Cost) TS Tax Payment for Vehicles more than ₹10 lakhs (Percentage of the Vehicle's Original Cost)
New 12% 14%
Not more than 2 years 11% 13%
Between two and three years 10.5% 12.5%
Between three and four years 10% 12%
Between four and five years 9.5% 11.5%
Between five and six years 9% 11%
Between six and seven years 8.5% 10.5%
Between seven and eight years 8% 10%
Between eight and nine years 7.5% 9%
Between nine and ten years 6.5% .5%
Between ten and eleven years 6% 8%
More than eleven years 5.5% 7.5%

Telangana Road Tax for Commercial Vehicles

Road taxes for commercial vehicles in Telangana are calculated based on their specific function and purpose. It ensures that taxation is aligned with the nature of the vehicle's usage. For certain commercial vehicles, such as rollers and construction equipment vehicles, the tax slabs in Telangana are as follows:

No. of years since the commercial vehicle was first registered/Vehicle's age TS Tax Payment (Percentage of the Vehicle's Original Cost)
New 7.5%
Not more than three years 6.5%
More than three years but less than six years 5%
More than six years 4%

Non-transport vehicles owned by institutions, companies, organisations, and societies with a seating capacity of up to ten people are subject to road tax in Telangana. The tax rates for such vehicles are determined based on the following slab:

No. of years since the commercial vehicle was first registered/Vehicle's age TS Tax Payment for Commercial Vehicles under ₹10 lakhs (Percentage of the Vehicle's Original Cost)
New 14%
Not more than 2 years 13%
Between two and three years 12.50%
Between three and four years 12%
Between four and five years 11.50%
Between five and six years 11%
Between six and seven years 10.50%
Between seven and eight years 10%
Between eight and nine years 9%
Between nine and ten years 8.50%
Between ten and eleven years 8%
More than eleven years 7.50%

Telangana Road Tax for Other State Vehicles

Owners of vehicles from other states are permitted to drive their vehicles in Telangana for a duration of up to one year without the requirement of paying Telangana (TS) road tax.

However, if the vehicle is intended to be used in Telangana beyond this period, it must be registered with the Telangana Transport Department through a change of address or transfer of ownership process. Once registered in Telangana, the vehicle will be subject to the same road tax rates as mentioned earlier based on its class or category.

Online TS Road Tax Payment in Telangana: How to Do It?

To conveniently pay TS Road tax, follow the steps below:

  • Navigate to the Parivahan official website.

  • Choose the "Online Services" option and select the "Vehicles Related Services" tab.

  • From the available options, choose Telangana as the state and then pick the relevant Regional Transport Office.

  • Enter the vehicle's registration number and provide all the requested information accurately on the screen.

  • Once you have verified the details, pay your Telangana road tax securely online.

  • After successful payment, remember to download a copy of the receipt for future reference.

Alternatively, you can conveniently visit the Telangana Government's Automated Online Services portal to pay your road taxes.

Penalty for Non-Payment of Road Tax in Telangana

Failure to pay the road tax in Telangana on time may result in penalties and additional charges. If the road tax payment is delayed, a fine will be imposed, typically equal to double the quarterly tax amount in addition to the pending dues.

List of RTOs in Telangana

Listed below are some of the RTOs in Telangana:

RTO Location RTO Code
Adilabad TS-01
Karimnagar TS-02
Warangal (Urban) TS-03
Khammam TS-04
Rajanna TS-05
Mahbubnagar TS-06
Ranga Reddy TS-07
Nizamabad TS-16
Warangal (Rural) TS-24
Hyderabad North TS-10
Hyderabad Central TS-09
Hyderabad East TS-11
Hyderabad West TS-13
Hyderabad South TS-12

Motor Insurance in Telangana

Ensuring timely payment of road taxes is a civic duty, just as obtaining comprehensive bike or a car insurance policy is essential for protecting your finances in an accident. The Motor Vehicles Act mandates that every vehicle on the road must have valid insurance coverage.

Tata AIG offers a wide range of car and bike insurance plans, catering to different coverage needs. These plans provide varying levels of protection, giving you the peace of mind to explore the beautiful state of Telangana without worrying about unforeseen financial burdens.

You can utilise the online bike/car insurance calculator Tata AIG provides to decide and find the best insurance rates. This tool lets you compare different plans, assess premiums, and select the most suitable option based on your requirements and budget.

Investing in a reliable Tata AIG bike policy or insurance for 4-wheeler plan will fulfil your legal obligations and safeguard you against potential financial liabilities arising from accidents or damages.

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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