A Brief Overview Of Road Tax Rules And Regulations In India
Car Insurance

A Brief Overview Of Road Tax Rules And Regulations In India

The government levies various types of taxes to upgrade the standard of living for its citizens. India is a vast country that has an extensive network of roads to connect one part of the nation to the other. To expand, improve and maintain the quality of this road network, the government levies a tax called the road tax. It is essential to know about the various road tax rules in your country if you wish to drive your car without any legal hassle.

However, if you do not already know about India’s various road tax rules and regulations, do not worry! Here is a brief overview of the same:

Central vs State government: Who levies the road tax in India?

Road tax is primarily a state–level tariff. This is because state governments construct about 80% of the roads in India. The toll tax you pay for your vehicle, the passenger and goods tax, and the state vat are collected by the state government. The road tax you need to pay varies from one state to another. This is because the road network and conditions are different for every territory in India.

It is important to note that a small portion of the road tax levied on the usage of national highways is collected by the central government. The central government also charges customs duty, central sales tax, GST, central excise, and other additional cess depending on the make and model of your vehicle.

What factors affect the calculation of road tax?

As per the new road tax rules, the calculation of your road tariff is affected by the following characteristics of your vehicle:

  • Its engine capacity
  • Age
  • Ex–showroom price
  • State of registration
  • Fuel type
  • Whether it is a personal or commercial vehicle
  • Vehicle’s class, i.e., two–wheeler, four–wheeler, agricultural, or industrial
  • Seating capacity and,
  • The weight of your car.
When do you pay the road tax?

You pay the road tax at the time of registering your vehicle. Depending on the state in which you register your car, you can either make the payment all at once or pay the same in parts on an annual basis.

If you change your area of residence, you need to re–register your car in the new state and make the road tax payment again. However, if you are only visiting another state, you only need to pay the toll tax.

How does one pay road tax in India?

According to the road tax rules, a vehicle owner can pay road tax online or offline in India. To pay the road tax offline, you must visit the RTO where your vehicle is registered, fill up the road tax form and submit the same with the required documents. Once the concerned official has verified your details, you can pay the road tax in cash or through a demand draft.

You would require the following documents to pay your road tax by physically visiting the RTO:

  • Vehicle registration certificate
  • Vehicle insurance papers
  • Your ID proof
  • Address proof
  • The invoice for the vehicle purchase

If you wish to pay the road tax online, you can visit the Ministry of Road Transport and Highways website. Once you are on the website, click on ‘Online Services’, select ‘Vehicle Related Services’, enter your vehicle registration number, and pay the road tax using the payment method that is comfortable for you.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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