Telangana Road Tax
Telangana Road Tax
Telangana has a growing network of highways and urban roads that form the backbone of its transport system. These roads connect important metropolitan cities, such as Hyderabad, with destinations like Warangal and others. To maintain this infrastructure, the state imposes a road tax on all motor vehicles operating within the state.
This tax, collected by the Telangana Transport Department under the Telangana Motor Vehicles Taxation Act, 1963, pays to fund road construction, maintenance and development in the state.
Paying road tax is a mandatory responsibility for every vehicle owner in Telangana. The payable amount depends on several factors, including the vehicle’s type, purpose, engine capacity and age. Understanding these criteria helps you stay compliant and avoid unnecessary penalties.
So, what exactly is Telangana road tax, and how is it calculated? Let's look at some of the specifics of road tax in Telangana! Continue reading to learn more
What is Telangana Road Tax?
Telangana Road Tax is a compulsory tax that every vehicle owner must pay in Telangana. The Telangana Transport Department imposes this tax under the Telangana Motor Vehicles Taxation Act for using public roads within the state. The tax is collected to fund the maintenance and development of the state’s transport infrastructure.
Moreover, Telangana, the newest state with Hyderabad as its capital city, has a 24,245 km of road length, comprising 3,152 km of State Highways, 12,079 km of Major District Roads, and 9,014 km of Other District Roads. These roads connect major cities, towns, and rural areas, supporting both economic activity and daily travel.
The metropolis of Hyderabad is home to a significant population, resulting in a substantial number of vehicles plying its roads. To ensure these routes remain safe and efficient, the government collects Telangana vehicle tax from car owners. The payable amount is based on factors such as vehicle type, use, and movement within the state. Vehicle owners must declare these details to the taxation authority, which then assesses and imposes the applicable tax.
Importance of Road Tax in Telangana
Improving Infrastructure and Amenities
To ensure safer and more efficient travel, the collected tax helps fund essential amenities such as street lighting, road signage and drainage systems.
Maintenance of the Roads
Telangana has one of the largest road networks in India. It stretches over 24,000 kilometres. To maintain and improve this infrastructure, the government imposes the road tax on all vehicle owners.
Legal Obligation
As per Section 39 of the Motor Vehicles Act, 1988, every vehicle owner is required to pay road tax to ride/drive a vehicle legally on public roads.
Improving Road Safety
A portion of the revenue earned from the road tax is used to implement traffic safety programs, install protective barriers and provide emergency medical assistance during road accidents.
Supporting Expansion and Modernisation
Road tax revenue also contributes to the construction and expansion of highways, expressways and rural roads. This helps to accommodate the growing number of vehicles on Indian roads.
Applicability of Road Tax in Telangana
If you fall under any of the following categories, you must pay road tax:
If you have recently moved to Telangana from another state and have brought a vehicle registered in your native state, you must pay the road tax to transfer your registration to Telangana’s RTO.
If you are a commercial vehicle operator and run goods carriers, buses, taxis, or trucks for commercial purposes, you must pay the RTO tax in Telangana. This applies regardless of whether the vehicle is newly registered or already in operation.
For private vehicle owners, if you register a car or a two-wheeler for personal use within Telangana, you must pay road tax.
The responsibility for levying Telangana vehicle 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.
How Telangana Road Tax Works?
In Telangana, road tax is based on several factors, including the type of vehicle, its usage and specific technical details. The Telangana road tax calculation takes into account whether it is a two-wheeler, three-wheeler, four-wheeler, or a commercial vehicle. Moreover, the purpose of usage, such as personal use, transportation of goods, or commercial activities, also plays an important factor in determining tax rates.
Here's a breakdown:**
Commercial Vehicles: These vehicles, including buses, trucks and goods carriers, are taxed based on vehicle type, weight and axle configuration. This reflects the wear and tear these vehicles impose on the roads.
Four-wheelers (Private Vehicles): Tax for private cars is based on a percentage of the car’s ex-showroom price and it also depends on things like the car’s age, engine size, and number of seats.
Two-wheelers and Three-wheelers: For these vehicles, road tax is a fixed amount based on engine capacity.
Let us understand this with an example:
If you purchase a new four-wheeler for personal use with an ex-showroom price of ₹8 lakh, the road tax is calculated at 14% of the vehicle price. Hence, you will have to pay an amount of ₹90,000 as a road tax for the car.
How is the Road or RTO Tax Calculated in Telangana?
Now that you know how the RTO tax is calculated in Telangana, let us understand the RTO tax rates in Telangana:
Telangana Road Tax for Two-Wheelers
Road Tax Based on the Cost of the Vehicle (₹)
| Vehicle Age | Below 50,000 | ₹50,001 – ₹1 Lakh | ₹1 Lakh – ₹2 Lakh | Above ₹2 Lakh |
|---|---|---|---|---|
| New | 9% | 12% | 15% | 18% |
| Not more than 2 years | 8% | 11% | 14% | 17% |
| Between two and three years | 7% | 10% | 13% | 16% |
| Between three and four years | 6% | 9% | 12% | 15% |
| Between four and five years | 5% | 8% | 11% | 14% |
| Between five and six years | 4% | 7% | 10% | 13% |
| Between six and seven years | 3.5% | 6.5% | 9.5% | 12.5% |
| Between seven and eight years | 3% | 6% | 9% | 12% |
| Between eight and nine years | 2.5% | 5.5% | 8.5% | 11.5% |
| Between nine and ten years | 2% | 5% | 8% | 11% |
| Between ten and eleven years | 1.5% | 4.5% | 7.5% | 10.5% |
| More than eleven years | 1% | 4% | 7% | 10% |
Telangana Road Tax for Three or Four-Wheelers (Non-transport Category)
Road Tax Based on the Cost of the Vehicle (₹)
| Vehicle Age | Below ₹5 Lakh | ₹5 Lakh – ₹10 Lakh | ₹10 Lakh – ₹20 Lakh | ₹20 Lakh - ₹50 Lakh | Above ₹50 Lakh |
|---|---|---|---|---|---|
| New | 13% | 14% | 18% | 20% | 21% |
| Not more than 2 years | 12% | 13% | 17% | 19% | 20% |
| Between two and three years | 11.5% | 12.5% | 16.5% | 18.5% | 19.5% |
| Between three and four years | 11% | 12% | 16% | 18% | 19% |
| Between four and five years | 10.5% | 11.5% | 15.5% | 17.5% | 18.5% |
| Between five and six years | 10% | 11% | 15% | 17% | 18% |
| Between six and seven years | 9.5% | 10.5% | 14.5% | 16.5% | 17.5% |
| Between seven and eight years | 9% | 10% | 14% | 16% | 17% |
| Between eight and nine years | 8.5% | 9.5% | 13.5% | 15.5% | 16.5% |
| Between nine and ten years | 8% | 9% | 13% | 15% | 16% |
| Between ten and eleven years | 7.5% | 8.5% | 12.5% | 14.5% | 15.5% |
| Between eleven and twelve years | 7% | 8% | 12% | 14% | 15% |
| More than twelve years | 6.5% | 7.5% | 11.5% | 13.5% | 14.5% |
Telangana Road Tax for Non-transport Vehicles for Carrying Persons
This is applicable for non-transport vehicles for carrying persons owned by companies, institutions, societies, and organisations with a seating capacity of 10 people.
Road Tax Based on the Cost of the Vehicle (₹)
| Vehicle Age | Below ₹5 Lakh | ₹5 Lakh – ₹10 Lakh | ₹10 Lakh – ₹20 Lakh | ₹20 Lakh - ₹50 Lakh | Above ₹50 Lakh |
|---|---|---|---|---|---|
| New | 0.15 | 0.16 | 0.2 | 22 | 25 |
| Not more than 2 years | 0.14 | 0.15 | 0.19 | 0.21 | 0.24 |
| Between two and three years | 0.135 | 0.145 | 0.185 | 0.205 | 0.235 |
| Between three and four years | 0.13 | 0.14 | 0.18 | 0.2 | 0.23 |
| Between four and five years | 0.125 | 0.135 | 0.175 | 0.195 | 0.225 |
| Between five and six years | 0.12 | 0.13 | 0.17 | 0.19 | 0.22 |
| Between six and seven years | 0.115 | 0.125 | 0.165 | 0.185 | 0.215 |
| Between seven and eight years | 0.11 | 0.12 | 0.16 | 0.18 | 0.21 |
| Between eight and nine years | 0.105 | 0.115 | 0.155 | 0.175 | 0.205 |
| Between nine and ten years | 0.1 | 0.11 | 0.15 | 0.17 | 0.2 |
| Between ten and eleven years | 0.095 | 0.105 | 0.145 | 0.165 | 0.195 |
| Between eleven and twelve years | 0.09 | 0.1 | 0.14 | 0.16 | 19 |
| More than twelve years | 0.085 | 0.095 | 0.135 | 0.155 | 18.5 |
Note: The government charges an additional 2% surcharge on the vehicle cost for the second and subsequent personal vehicles registered by the same owner. This 2% surcharge is in addition to the standard road tax rate already prescribed for the vehicle's cost bracket and age.
Telangana Road Tax for Goods Vehicles (Short-term Licences)
| Class of Vehicle | For a Period Not Exceeding 7 Days (Amount in ₹) | For a Period Exceeding 7 Days but Not Exceeding 30 Days (Amount in ₹) |
|---|---|---|
| Up to 1,000 kg GVW | ₹80 | ₹330 |
| 1,001 kg to 3,000 kg GVW | ₹130 | ₹520 |
| 3,001 kg to 5,500 kg laden weight | ₹200 | ₹800 |
| 5,501 kg to 9,000 kg laden weight | ₹300 | ₹1,200 |
| 9,001 kg to 12,000 kg laden weight | ₹400 | ₹1,600 |
| 12,001 kg to 15,000 kg laden weight | ₹500 | ₹1,800 |
| Above 15,000 kg laden weight | ₹500 + ₹15 for every 250 kg more than 15,000 kg | ₹1,800 + ₹50 for every 250 kg more than 15,000 kg |
| Drawing trailers up to 3,000 kg laden weight | ₹100 | ₹400 |
| Drawing trailers more than 3,000 kg laden weight | ₹180 | ₹600 |
Factors That Influence Road Tax in Telangana
Purpose of Use
Road tax also varies depending on the usage of the vehicle for personal or commercial purposes. Commercial vehicles, such as taxis, trucks, or buses, generally pay higher taxes since they are used more frequently and cause more wear and tear to public roads.
Engine Capacity (CC)
Higher engine capacity vehicles emit more and consume more fuel, which contributes to higher taxes. Smaller engines like 100cc–150cc bikes are taxed less compared to high-performance or heavy-duty vehicles.
Type of Vehicle
Your vehicle type has an impact on the road tax. Two-wheelers and small-engine vehicles have a lower tax, while four-wheelers, especially SUVs and luxury cars, attract a higher rate due to their higher value and road impact.
Ex-showroom Price
The ex-showroom vehicle price of a car is the price before adding insurance, GST, or any additional charges. Telangana’s road tax is calculated as a percentage of this ex-showroom price.
Type of Fuel
The fuel type also affects road tax. EVs can get a complete or partial road tax exemption to promote eco-friendly transport. Whereas diesel vehicles attract higher taxes due to their higher emissions, petrol and CNG vehicles are taxed moderately.
Age of the Vehicle
As the age of the vehicles increases, their market value and impact on the road decrease. Hence, older vehicles are charged lower road taxes, while new vehicles must pay the full rate based on their ex-showroom price.
Also Read: RTO Telangana
How to Pay Road Tax Telangana
Online Process
Step 1: Begin by visiting the Telangana Transport Department's official website.
Step 2: On the homepage, locate and click the “Tax Verification” section.
Step 3: You will be directed to another page where you have to select “Tax Payment” from the online transactions menu.
Step 4: Choose the applicable tax payment type, such as quarterly tax or green tax, from the available options in the dropdown menu.
Step 5: Enter all necessary details about the vehicle and owner and the tax information, then press “Submit” to proceed.
Step 6: After submitting your details, you will be redirected to the payment gateway page.
Step 7: Select your preferred bank from the list and click “Proceed” to pay the road tax.
Step 8: Upon transaction success, you will receive a confirmation message with the approval of your payment.
Step 9: You will get a receipt. You can save and print this receipt for your records and future reference.
Offline Process
Step 1: Go to the nearest Regional Transport Office (RTO) in Telangana.
Step 2: Submit photocopies of documents such as your vehicle RC, pollution control certificate, identification proof, and address proof.
Step 3: Complete and submit Form-14. This is the designated road tax payment form.
Step 4: Make the road tax payment at the RTO counter using either cash or a demand draft.
Step 5: After the payment is done, you can get the official stamped receipt as proof of payment.
Also Read: RC Status Telangana - Check RC Application Status Online
Documents Required for Road or RTO Tax Telangana Payment
To pay road or vehicle tax in Telangana, you will need to provide specific documents depending on your payment method at the RTO. Below is a list of required documents:
A vehicle registration number is required for identifying your vehicle during online payment.
The chassis number is needed for verification while paying road tax online.
Registration certificate as proof of vehicle ownership. This is especially required for offline payments.
A valid proof of address is required when paying in person at the RTO.
Other helpful documents, especially for new vehicles, include the invoice and a valid insurance certificate.
Penalties for Not Paying 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, the Transport Department imposes fines, seizes vehicles and takes legal action against all defaulters. Here is what may happen if you miss your road tax payment:
The penalty for delayed payments can range from 50% to 100% of the arrears road tax, in addition to the original tax amount due. For first-time offenders, the fine is often equal to the road tax payable for two quarters.
For repeated offenders, the fines can be higher. This could include a penalty equal to or less than the vehicle's annual tax, which may be levied twice a year.
The RTO authorities can confiscate your vehicle if you do not pay all outstanding dues and fines.
Regular non-payment or intentional tax evasion can result in legal proceedings under state motor vehicle laws.
Refunds and Road Tax Transfer Rules in Telangana
You can claim TS RTO tax refunds in the following cases:
If you have relocated and re-registered your vehicle in another Indian state.
When you have permanently dismantled or scrapped the vehicle.
If you paid the road tax more than once for the same vehicle.
In the event of a major accident where the vehicle is damaged beyond repair.
How to Claim Road Tax Refund in Telangana?
There is no online procedure to apply for the road tax Telangana refund. Here are the Steps to apply for it:
Step 1: Go to the RTO where you had originally paid the road tax and submit a refund application.
Step 2: Provide the documents such as valid ID proof, original RC Book or new vehicle registration (if applicable), Form 16 (Road Tax Refund Form), address proof and road tax payment receipt.
Step 3: Submit your bank account details to get the refund.
Step 4: The RTO will calculate your refund amount based on the age of the vehicle and the unused tax period. After verification, you will receive the refunds within 3 to 6 months.
List of RTO Fines in Telangana
| Offence | Section | Penalty / Fine |
|---|---|---|
| Driving without a valid licence | 181 | ₹500 or 3 months imprisonment or both |
| Allowing an unlicensed or underaged person to drive | 180 | ₹1,000 or 3 months imprisonment or both |
| Overspeeding | 183(1) | ₹400 (first offence), ₹1,000 (repeat) |
| Dangerous driving | 184 | ₹1,000 or 6 months imprisonment |
| Drunken driving | 185 | ₹2,000 or 6 months imprisonment |
| Driving an uninsured vehicle | 196 | ₹1,000 or 3 months imprisonment or both |
| Driving a vehicle with excess load | 194(1) | ₹2,000 + ₹1,000 per extra tonne |
| Refusing to stop for weighing | 194(2) | ₹3,000 |
| Driving without registration | 192(1) | ₹2,000–₹5,000 (first offence); ₹5,000–₹10,000 or 1 year jail (repeat) |
| Driving without pollution certificate | 190(2) | ₹1,000 (first offence), ₹2,000 (repeat) |
| Driving without insurance / documents | 177 | ₹100 (first offence), ₹300 (subsequent) |
| Not wearing a helmet | 177 | ₹100 (first offence), ₹300 (subsequent) |
| Overloading passengers or goods | 194 | ₹2,000 minimum |
| Using vehicle in unsafe condition | 190(1) | ₹250 to ₹1,000 or 3 months imprisonment |
| Illegal racing or speeding trials | 189 | ₹500 or 1 month imprisonment |
| Vehicle without fitness certificate | 192(1) r/w Sec.39 | ₹2,000–₹5,000 (first offence), ₹5,000–₹10,000 (repeat) |
| Driving a defective or polluting vehicle | 190(2) | ₹1,000–₹2,000 |
| Disobeying traffic signs | 177 | ₹100 (first offence), ₹300 (subsequent) |
| Failing to produce a licence or insurance | 177 | ₹100 (first offence), ₹300 (subsequent) |
| Abandoning a vehicle in a public place | 177 | ₹100 (first offence), ₹300 (subsequent) |
Also Read: Telangana Traffic Fines
Key Takeaways
Paying the Telangana road tax is your contribution to building, improving and maintaining the state’s road network. Having a good idea about the applicable rates, payment methods and compliance rules ensures a smooth and penalty-free ownership experience. Learning all your responsibilities keeps you compliant and helps you drive confidently when you purchase a new vehicle or relocate to Telangana.
Ensuring timely payment of road taxes is a civic duty, just as obtaining a comprehensive bike or 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 at least a third-party bike or car insurance in India.
TATA AIG offers a wide yet cheap car insurance and car insurance 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 by TATA AIG 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 or car policy for a 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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