Introduction

Owning a vehicle in India comes with certain responsibilities, and one of them is paying road tax. Road tax, also known as motor vehicle tax or VAHAN tax, is an essential aspect of vehicle ownership in the country. In this comprehensive guide, we will explore everything you need to know about road tax for vehicle owners in India.

Understanding Road Tax

What is Road Tax?

Road tax is a tax levied by both the central and state governments in India. While the central government imposes the Central Road Fund (CRF) tax, the state governments levy state road tax. The funds collected from road tax are used to maintain and expand the road infrastructure, provide basic amenities, and ensure road safety measures.

Who Levies Road Tax?

Road tax in India is primarily a state-level tax since the maintenance of local roads is the responsibility of the state governments. The central government imposes the CRF tax, which includes customs duty, central excise, central sales tax, Goods and Services Tax (GST), and additional cess based on the vehicle’s model and type. The state governments impose yearly or lifetime motor vehicle tax, passenger and goods tax, state VAT, and toll tax.

Factors Affecting Road Tax Calculation

Several factors influence the calculation of road tax in India. These factors include:

1. Vehicle Type: Different vehicle categories, such as two-wheelers, cars, SUVs, and commercial vehicles, have varying road tax rates.
2. Engine Capacity: The road tax may also depend on the engine capacity of the vehicle, with higher engine capacity vehicles often attracting higher tax rates.
3. Purpose of Usage: In some states, the purpose of vehicle usage, such as personal or commercial, can influence the road tax amount. Commercial vehicles generally have higher tax rates.
4. Age of the Vehicle: In a few states, the age of the vehicle also affects the road tax calculation, with older vehicles potentially attracting lower tax rates.

To calculate road tax accurately, you can use the online road tax calculator provided by the Ministry of Road Transport and Highways.

Paying Road Tax

Online Payment

Road tax can be paid both online and offline in India. To pay road tax online, follow these steps:

1. Visit the Parivahan website maintained by the Ministry of Road Transport and Highways.
2. Under Online Services, click on Vehicle Related Services.
3. Select the state in which your vehicle is registered, and you will be redirected to a state-specific webpage.
4. Choose your Regional Transport Office (RTO) from the drop-down menu and log into your account.
5. Enter all the relevant details, such as your vehicle’s registration number.
6. Verify the details and proceed to make the online payment.

Offline Payment

If you prefer to pay road tax offline, you can visit the Regional Transport Office (RTO) where your vehicle is registered. Fill out the Parivahan tax form, make the payment at the cash counter, and collect the road tax payment receipt.

Documents Required for Road Tax Payment

When paying road tax offline, you may be asked to submit certain documents at the Regional Transport Office (RTO). These documents include:

• The Registration Certificate of your vehicle
• The vehicle insurance policy
• The purchase invoice of your vehicle
• A copy of your identity proof
• A copy of your address proof

For inter-state transfers, you may also need to provide a copy of the No-Objection Certificate (NOC) provided by the RTO of the previous state.

Road Tax Refunds

Claiming a Refund

If you decide to sell or dispose of your vehicle, you can claim a road tax refund from the Regional Transport Office (RTO) where your vehicle is registered. Additionally, if you move from one state to another, you can also claim a road tax refund. However, you must re-register your vehicle in the new state and have an active vehicle insurance policy.

Importance of Vehicle Insurance

Vehicle insurance is not only mandatory for road tax payment but also crucial for protecting your vehicle and yourself against unforeseen risks. Having a comprehensive motor insurance policy, such as Bajaj Allianz General Insurance’s motor vehicle insurance, can provide you with peace of mind and financial protection in case of accidents or damages.

Some benefits of Bajaj Allianz General Insurance’s motor vehicle insurance include:

• Online purchase and renewal options
• Transfer of No Claim Bonus from any insurance provider
• Round-the-clock claims assistance
• Quick and hassle-free claims settlement

By ensuring you have the right vehicle insurance in place, you can comply with legal requirements while protecting your investment.

Conclusion

Understanding road tax is essential for all vehicle owners in India. By knowing the factors that influence road tax calculation and how to pay it, you can fulfill your responsibilities as a responsible vehicle owner. Remember to keep your vehicle insurance policy active and consider reputable insurers like Bajaj Allianz General Insurance to ensure comprehensive coverage and peace of mind on the road.