Do you know about Road Tax Calculation for your car/ bike?
Vehicle Road Tax Calculation : If No then lets know about how to calculate Road Tax for your car/ bike in India. Here is this to know about full details about Road Tax Calculation in this article. Ask oneself how the government of India constructs roads and repairs when be in need of ? Well, the centre and state government do so with the money the citizen of the country pay as taxes. The tax that people pay to the government is utilized for various purposes for the development of the country. With is this money they constructs new roads and repairs the old.
Next time, when you see the road being constructed newly or being repaired then remember that its been your contribution along with others been used. In India, the road tax is levied on every vehicle. But if you don’t know how its been calculated, particular Road Tax Calculator is used. For more details visit vahan.parivahan.gov.in.
Table of Contents
About Vehicle road Tax :
As per the Motor Vehicle Act, 1988 Section 39 mentions that the state government levy road tax for each vehicle in India. The Tax for the vehicle varies among different states and to know more about it , one must know there are many factors that play a significant role for calculation.
Read more: VEHICLE ROAD TAX CALCULATION FOR YOUR CAR/BIKE : EVERYTHING YOU NEED : LATEST 2024Types of Road Tax in India:
The road tax is compulsory for any vehicle that is running in the state. The taxes are levied by both centre and state government:
State Government:
Full – time tax or once a year for all motor vehicles passenger and goods tax, applicable toll tax, State specific VAT, etc
Central Government:
Levies central excise customs duty, applicable GST and another extra basis the model and category of the vehicle, suitable central sales tax.
Factors impacting Vehicle Road Tax Calculation:
The vehicle Road Tax is calculated considering various following factors:
- Engine Capacity of a Car/ Bike : The cubic capacity of the vehicle is one of the determining factor. There is lower tax rate for the vehicle with 900cc as compared to vehicle with 1300cc engine.
- Age of the Vehicle : Older or second – hand car / bike charges relatively low as compared to newly purchased vehicle.
- Weight of the Vehicle : This is another factor which plays a significant role in determining road taxes. The heavier vehicles levy more charges than small. So when you choose SUV, you will need to pay more.
- Seating Capacity of the Vehicle : Increased rate for more seating capacity of vehicle than less one. The rate is different for various seating capacities of the vehicle like two – wheeler, three – wheeler or four – wheeler.
- Fuel type used : It depends upon the vehicle which runs on petrol , diesel or CNG.
- Usage Purpose : The taxes are different for commercial and personal vehicles . If you are buying a bike, then tax will be low than if you buy a car.
Road Tax Calculation :
The Road Tax calculator in India is calculated by the RTA (Regional Transport Authority) or the RTO (Regional Transport Office) based on the price of vehicle as stated in the invoice and vehicle’s age. The methos used for calculation includes the following :
- Type of Vehicle : Two – Wheeler / Four Wheeler / Electric
- Type of Fuel : Petrol/ Diesel/ LPG/ CNG
- Invoice price
- Purchase Date
- Vehicle Number
Is there need to pay Tax after migrating to different state:
Once you already paid road tax in one state while purchase of vehicle, you can travel anywhere in that state. But if you migrated to another state you need to pay tax once again for re – registration of the vehicle. You would have to comply with the rules and regulations of the that state.
However, the transfer process of the vehicle is not as simple as you consider. There are many formalities involved with this procedure. If you are paying road tax in new state of residence, you must cancel the registration of the previous residing state. Also, you must acquire no – objection certificate regarding transfer of vehicle from one state to another. This NOC certificate is mandatory and clarifies that the vehicle was not involved in any accident scenario or being stolen.
The documents required are :
- Form 20
- form 28
- NOC from the previous RTO
- Address Proof
- Form 33
- Attested copy of the PUC certificate
- Passport Size photograph
- NOC from the bank if it was purchased for loan
- PAN card or Form 61 0r 60
Key point : The re – registration or payment of road tax for the second time is only required when the owner of the vehicles permanently shifting from one state to another.
Road Tax Calculation in Few States:
- Delhi Road Tax : The residents of Delhi has to bear 4%, 7%, 10% of a four – wheelers cost as road taxes, for cars price costing upto 6 lakhs and 10 lakhs or above. For instance if your car’s cost is INR 5 lakhs , the you need to pay 4% of 5 lakhs or INR 20,000. Alternatively for two wheelers it charges 4% of the vehicle cost priced upto INR 25000 and 6%, 8% for vehicles more than INR 25000.
- Karnataka Road Tax : For a new two – wheeler priced less than INR 50,000 , you will need to pay 10% of the vehicle cost. The vehicle costing between INR 50000 and INR 1 lakh , the charge is 12% of the cost as road taxes. Also , for new electric two – wheeler the charge is nearly 4% which is comparatively lower than other vehicles. However if you own a four – wheeler the charges range between 13% and 93% depending on age of the vehicle and price.
- Kerala Road Tax : If you own a new motor cycle, the road tax is 6% of the vehicle’s cost price. For three – wheelers the charges one must pay is same i.e 6% of the vehicle’s cost.
FAQs
ANS – You need to pay within one month period . Failure to pay may charge fines and penalities.
ANS – To pay online one must visit official website of Ministry of Road Transport and Highways or through Parivahan portal. For offline you must visit nearby RTO and fill the concerned form and submit it.
ANS – Road Tax is also called Motor Vehicles Tax or MV Tax