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Rules and Regulations Of Road Tax In India

A good road network is essential for economic growth. Roads provide connectivity to remote regions and open up opportunities for trade and investment. India has the second-largest road network in the world spanning 58.98 lakh kilometers. As per a recent report, 64.5% of the goods are transported by road and 90% of India’s passenger traffic commutes through roadways.

The Central Government maintains National Highways, State Highways and other roads are maintained by the respective State Governments. To construct and maintain the roads and highways and to upgrade the road infrastructure, the Central and State Governments levy road tax on every individual who buys a motor vehicle for personal or commercial use.

Documents Required To Pay Road Tax

  • Registration Certificate
  • Valid Insurance
  • Personal ID Proof and Address Proof
  • Vehicle Invoice

How to Calculate Road Tax

The road tax differs from state to state. It is calculated based on the ex-showroom price of the vehicle. It also depends on the following factors:

  • Engine Capacity
  • Seating Capacity
  • Age Of The Vehicle
  • Weight Of The Vehicle

When To Pay Road Tax?

A Road Tax is paid at the time of registering the vehicle. Based on the state’s criteria, the road tax is either paid annually or for a lifetime. But if you have bought the car in one state and paid a lifetime road tax and if you are shifting your base to another state, you will have to get a no-objection certificate (NOC) from your RTO and re-register it in the new state and you will be required to pay the road tax again.

How To Pay Road Tax?

For new vehicles, the initial road tax is paid by the vehicle dealer which will be included in the on-road price of the vehicle. Once the validity expires (in case of annual payment) the car owner needs to pay it either through the online or offline medium.

For Online Payment

 Road tax can now be paid online through the Vahan portal:

  • Visit https://parivahan.gov.in/parivahan/   
  • Under Online Services - Go to Vehicle Related Services
  • Select your state and RTO
  • Select the required service, enter the details and make the payment.

For Offline Payment

Car owners also have the option to visit the registered Regional Transport Office (RTO), submit the road tax renewal form and pay the tax amount. The downside of this method is, it is very time and energy-consuming.          

Road Tax In Tamil Nadu

From 2008, The Government of Tamil Nadu levied lifetime road tax. The road tax details are given below:

Age Of The Vehicle

Vehicle Cost - Less Than 10 Lakhs

Vehicle Cost - More Than 10 Lakhs

New Vehicle

10% Of The Vehicle’s Cost Price

15% Of The Vehicle’s Cost Price

Greater Than 4 Years But Less Than 5 Years

7.75% Of The Vehicle’s Cost Price

12.75% Of The Vehicle’s Cost Price

Greater Than 9 Years But Less Than 10 Years

6.50% Of The Vehicle’s Cost Price

11.50% Of The Vehicle’s Cost Price

More Than 11 Years

6% Of The Vehicle’s Cost Price

11% Of The Vehicle’s Cost Price

For battery-operated non-transport vehicles, the lifetime road tax will be 5% for vehicles that cost below Rs. 10 lakhs and 7.5% for vehicles that cost above Rs. 10 lakhs.

When you look at other states, Karnataka has the highest road tax for older vehicles. Maharashtra and Delhi charge the highest road tax for diesel vehicles. On the other hand, the road tax is less for electric/CNG vehicles in many states.

If you are looking to buy your first car or planning to replace your existing car it is important to consider these factors that could save you money in the long run. Talking about savings, make sure you choose the right car insurance that fits your needs. For more details visit Cholamandalam car insurance. 

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