Key Points About Road Tax in India

1. Applicability:

   • Personal Vehicles: Two-wheelers, cars, and SUVs used for personal purposes.
   • Commercial Vehicles: Trucks, buses, taxis, and others used for business or transportation services.

2. Factors Affecting Road Tax:

   • Type of Vehicle: Two-wheelers, four-wheelers, and commercial vehicles attract different rates.
   • Purpose: Personal or commercial use.
   • Engine Capacity (CC): Larger engine capacities typically incur higher taxes.
   • Vehicle Price: Some states calculate tax based on the vehicle's ex-showroom price.
   • Vehicle Age: Newer vehicles generally attract higher taxes; older ones may be eligible for lower tax rates.
   • Fuel Type: Diesel, petrol, CNG, or electric vehicles (EVs). EVs often have lower or zero road tax in some states to encourage eco-friendly transportation.

3. One-Time Tax (Lifetime Tax):

   • Most states require vehicle owners to pay road tax as a one-time fee, valid for 15 years for private vehicles.
   • Commercial vehicles may have annual road tax payments.

4. State-wise Variations:

   • Each state has its own method of calculating road tax. For example, Maharashtra, Karnataka, and Delhi have higher rates compared to some northeastern states.

5. Exemptions and Concessions:

   • Electric and hybrid vehicles often receive tax exemptions or concessions in several states.
   • Vintage and classic vehicles may also have reduced tax rates.

6. Penalty for Non-Payment:

   • Non-payment or delayed payment of road tax can result in penalties, fines, or even impounding of the vehicle.

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How to Pay Road Tax

1. Online Payment:
   • Most states have an online platform via their Regional Transport Office (RTO) websites for paying road tax.
   • Payment can be made during vehicle registration or for renewal.
2. Offline Payment:
   • Visit the local RTO with required documents, such as vehicle registration certificate (RC), insurance, and purchase invoice.

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Example State-Wise Road Tax Rates

• Karnataka: ~13-18% of the ex-showroom price for private vehicles.
• Delhi: 4-12.5%, depending on the type and price of the vehicle.
• Uttar Pradesh: 6% for two-wheelers and ~8% for four-wheelers.
• Kerala: 10-20%, varying by price and engine capacity.

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Re-registration and Interstate Transfer

• When transferring a vehicle from one state to another, you need to:
  1. Obtain a No Objection Certificate (NOC) from the original RTO.
  2. Re-register the vehicle in the new state and pay applicable road tax.
  3. Claim a refund of the road tax paid in the previous state (subject to conditions)

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