What is Road Tax?

Road Tax are levied by the Central and State governments on new vehicle purchases primarily to fund the maintenance of India's road infrastructure.

Road Tax in India: A Guide to Payments and Insurance

Road tax stands as a financial obligation that every vehicle owner in India must fulfil. Additionally, it is a mandatory fee imposed by the government for using public roads. This guide delves into the intricacies of road tax, addressing common questions, payment processes, and state-specific nuances, empowering you to navigate the roads with confidence and helping you ensure full compliance.

Who Has to Pay Road Tax in India?

Road tax is a mandatory financial obligation applicable to all vehicle owners in India. Commonly referred to as the Vahan tax, it is an essential contribution towards the maintenance and development of the country's extensive road infrastructure. Irrespective of the vehicle type, every owner is legally bound to pay road tax, ensuring a systematic funding mechanism for the nation's transportation network. This makes it necessary to know what is road tax.

Who Levies/Imposes Road Tax?

Road tax is imposed jointly by state governments and central governments. This dual authority ensures a standardised approach to road tax across the nation. State governments regulate road tax rates and policies within their jurisdiction, while the central government plays a supervisory role in maintaining consistency in taxation practices.

Highest Claims
Payout

Nil Pending Complaints

Over 60 Lakh
Happy Customers

RTO Road Tax Online Payment: How to Do it?

Here is a step-by-step process for paying a road tax online:

Start by logging on to the official Regional Transport Office (RTO) website.
Log in to your existing account or register if it is your first time using the portal.
Navigate to the 'Pay Road Tax' section on the website.
Input your vehicle details, including registration number and type.
The system will calculate the road tax amount based on your vehicle details.
Complete the transaction securely through the chosen payment gateway.
Once payment is successful, you will receive a confirmation receipt.

Road Tax Offline Payment: How to Do It?

Here is a step-by-step process for paying your road tax offline:

Step 01

Head to the nearest Regional Transport Office (RTO) in your area.

Step 02

Obtain the road tax payment form from the designated counter.

Step 03

Complete the form with accurate details about your vehicle, including registration number and type.

Step 04

Ensure you have all required documents, such as vehicle registration and identification proof.

Step 05

Make the payment using cash or a demand draft per the RTO's guidelines.

What are the Required Documents to Pay Road Tax?

The documents required to pay your road tax are:

An updated and valid Registration Certificate for the vehicle.

Government-issued ID like an Aadhar card, passport, or driver's licence.

Document confirming your current address, such as a utility bill or rental agreement.

A copy of the vehicle insurance certificate.

Note down these numbers for accurate tax calculation.

Ensure your vehicle has a valid Pollution Under Control certificate.

How to get a Refund on Road Tax?

To secure a road tax refund, follow the steps listed below.

Start by confirming your eligibility, typically linked to factors such as vehicle deregistration or relocation.
Gather crucial documents like the original road tax payment receipt and the vehicle deregistration certificate.
Visit your Regional Transport Office (RTO) to complete the refund application process. Ensure meticulous form filling and document submission, initiating the verification procedure by RTO authorities.
Once eligibility is established, the refund calculation ensues, and upon completion, collect the refund amount either through a cheque or direct bank transfer.

This is how to get a road tax refund.

What Is the Penalty for Non-Payment of the Road Tax?

The penalties for failing to fulfil your road tax obligations vary by region and are enforced by the respective transport authorities. Common penalties may include hefty fines, late payment charges, and the potential for legal action against the vehicle owner. Continued non-compliance may also result in the suspension of your vehicle's registration, restricting your ability to use it legally on public roads. To avoid such repercussions, it is crucial to adhere to the specified timelines and make prompt road tax payments as required by the applicable regulations in your region.

Does Road Tax Vary Based on the Type of Vehicle?

Yes, road tax varies based on the type of vehicle. Different categories of vehicles, such as cars, motorcycles, commercial vehicles, and others, often have distinct road tax rates. The variation is typically influenced by factors like the vehicle's weight, engine capacity, purpose (personal or commercial), and emissions. These criteria help authorities determine the impact of the vehicle on road infrastructure and the environment.

Transfer of Vehicle’s Registration – Interstate

Initiate the process by securing a No Objection Certificate (NOC) from the current RTO. Present this NOC, along with necessary documentation, to the RTO in the destination state. Some states may necessitate a physical inspection of the vehicle. Pay the applicable fees, encompassing road tax and registration charges, and once approved, receive a new Registration Certificate. Update your insurance and emission certificate accordingly, and affix the new number plate, ensuring a seamless and compliant transition as your vehicle moves across state borders within India.

What is Toll Tax?

A toll tax is a fee levied on vehicles for using specific roads or bridges, often designated as toll roads. This charge contributes to the maintenance, development, and improvement of the infrastructure, ensuring well-kept roads and bridges. Toll booths equipped with electronic toll collection systems or manned by personnel facilitate the payment process.

Differences between Road Tax v/s Toll Tax

Road Tax	Toll Tax
It funds general road infrastructure and maintenance.	It supports specific road or bridge maintenance.
The state or central government is the collection authority.	Agencies managing toll roads or bridges collect toll charges.
It is paid during vehicle registration.	It is paid per trip. It means the toll must be paid with every trip.
It varies by vehicle type, age, and regulations.	It varies by toll road, distance, and vehicle category.
It is mandatory for all registered vehicles.	It is payable only when using toll roads or bridges.
It is collected during vehicle registration.	It is collected at toll booths on designated roads or bridges.
Penalties of fines, registration suspension, legal actions are possibilities in the event of non-payment of taxes.	Those who do not comply with the road tax regulations may be denied access to the toll road, with fines being imposed in certain cases.

List of Different Motor Insurance Plans

Potential policyholders can explore a variety of motor insurance plans at Shriram General Insurance, each meticulously crafted to cater to diverse needs. From mandatory Third-Party Liability and Comprehensive Insurance to specialised options such as Zero Depreciation and Personal Accident Cover, Shriram General Insurance ensures comprehensive coverage options.