The Ultimate Guide to Understanding Road Tax for Vehicle Owners in India
Introduction Owning a vehicle in India comes with certain responsibilities, one of which is paying road tax. Road tax, also known as motor vehicle tax or VAHAN tax, is a mandatory tax that every vehicle owner in India must pay. This tax is used by the government to maintain and expand the infrastructure of the country’s road network. In this comprehensive guide, we will explore everything you need to know about road tax in India, including who levies it, how to calculate and pay it, and even how to claim a refund if necessary.
Who Levies Road Tax?
In India, road tax is levied by both the central and state governments. However, road tax is primarily a state-level tax since the cost of maintaining local roads falls under the jurisdiction of state governments. The central government imposes the Central Road Fund (CRF) tax, which includes customs duty, central excise, central sales tax, Goods and Services Tax (GST), and other additional cess based on the model and type of the vehicle. On the other hand, the state government levies yearly or lifetime motor vehicles tax, passenger and goods tax, state VAT, and toll tax. The specific rates and regulations may vary from state to state.
How to Calculate Road Tax in India
Calculating road tax in India involves considering several factors. These factors include the type of vehicle, engine capacity, purpose of usage (personal or commercial), and the age of the vehicle. Different vehicle categories, such as two-wheelers, cars, SUVs, and commercial vehicles, have varying road tax rates. Vehicles with higher engine capacities generally attract higher tax rates. Additionally, some states may offer lower tax rates for older vehicles. To simplify the calculation process, you can use the online road tax calculator provided by the Ministry of Road Transport and Highways.
How to Pay Road Tax in India
Road tax can be paid both offline and online in India. To pay road tax online, visit the Parivahan website maintained by the Ministry of Road Transport and Highways. Under the “Online Services” section, select “Vehicle Related Services” and choose the state in which your vehicle is registered. You will be redirected to a state-specific webpage where you can log into your account and enter the relevant details, such as your vehicle’s registration number. Verify the details and proceed to make the online payment. Alternatively, if you prefer the offline method, you can make the payment at the Regional Transport Office (RTO) where your vehicle is registered. Simply fill out the Parivahan tax form, make the payment at the cash counter, and collect the road tax payment receipt.
Documents Needed for Road Tax Payment in India
When paying road tax offline, you may be required to submit certain documents at the Regional Transport Office. These documents typically include the Registration Certificate of your vehicle, the vehicle insurance policy, the purchase invoice of your vehicle, a copy of your identity proof, and a copy of your address proof. In the case of inter-state transfers, you may also need to provide a copy of the No-Objection Certificate (NOC) issued by the RTO of the previous state.
Road Tax Refunds in India
If you decide to dispose of your vehicle or if you are moving from one state to another, you may be eligible for a road tax refund. To claim a refund, you must submit a request to the RTO where your vehicle is registered or to the RTO of the state you are transferring to. It is important to note that vehicle owners must re-register their vehicles in the new state and have a valid vehicle insurance policy in order to claim a road tax refund.
Benefits of Bajaj Allianz General Insurance’s Motor Vehicle Insurance
Having a valid vehicle insurance policy is not only a legal requirement but also provides protection and peace of mind. Bajaj Allianz General Insurance offers motor vehicle insurance that is compatible with the law and offers various benefits, including online purchase and renewal, transfer of No Claim Bonus, instant support, and quick claims settlement. With Bajaj Allianz General Insurance’s motor vehicle insurance, vehicle owners can pay their road tax and ensure they are covered against any unforeseen risks while staying compliant with legal requirements.
Conclusion
Understanding road tax is essential for every vehicle owner in India. By knowing who levies road tax, how to calculate and pay it, and how to claim a refund if necessary, vehicle owners can fulfill their responsibilities and contribute to the maintenance and development of the country’s road infrastructure. Additionally, having a reliable motor vehicle insurance policy, such as the one offered by Bajaj Allianz General Insurance, provides added protection and peace of mind. Stay informed, fulfill your obligations, and enjoy the benefits of being a responsible vehicle owner in India.
