The Indian government levies a road fee on its citizens to provide basic infrastructure. The government levies this tax to maintain and create roads, highways, bridges, railway tracks, and other infrastructure. The tax is normally collected in various methods, and it is imposed by both the state & national governments. This is because road tax regulations differ from state to state, and as a result, it fluctuates slightly when travelling between Indian states.
So, while purchasing a vehicle, you must pay a set amount of money to the Government of India as Road Tax to drive the vehicle on Indian roads. According to the Motor Vehicle Taxation Act, it is mandatory to pay road tax.
According to Section 39 of the Motor Vehicle Act of 1988, all motor vehicles must pay a road tax set by the state and the central government, apart from the fees paid for registration and Insurance. When purchasing a new vehicle, two prices must be considered: the on-road price and the ex-showroom price. On-road price, as the same suggests, is the amount that buyer eventually pays, which comprises various taxes (road tax, registration charges, Insurance, etc.) that are levied by the state & central government on top of the ex-showroom price.
In India, each state has its percentage and method for calculating the road tax. The calculation of road tax is based on the following factors:
Engine Capacity of the Vehicle:
When calculating your road tax obligations, the cubic capacity of your chosen vehicle is taken into account. When comparing a vehicle with an 800cc engine to a vehicle with a 1100cc engine, for example, an 800cc engine will attract cheaper taxes.
The vehicle's type:
Whether it's a two-wheeler, three-wheeler, or four-wheeler, as an example, the road tax computation is based on the vehicle's seating capacity for two-wheelers in Andhra Pradesh.
Weight of the Vehicle:
When it comes to assessing road taxes, the weight category of a vehicle is significant. Most states impose higher taxes on heavier models. As a result, if you choose an SUV over a smaller vehicle, such as a hatchback, you will have to pay substantially more road tax.
The road tax levied on commercial vehicles is usually different from that levied on personal vehicles. As a result, how you intend to utilize your vehicle plays a role in determining your tax obligations. Based on fuel type used: Car taxes vary depending on whether your vehicle operates on gasoline, diesel, or compressed natural gas.
Age of the vehicle:
When compared to buying older or used cars, buying a new car will require you to pay a higher road tax.
Check your state's tax rules and rates before utilizing a road tax calculator. This should help you figure out how much you'll have to pay.
Assume you paid road taxes when you registered your car in one state. However, if you need to move to another state after a few years, you'll have to follow that state's road tax requirements as well. As a result, when re-registering the vehicle, be prepared to pay taxes on the same vehicles once more. The transfer process, on the other hand, is not that straightforward. This method also entails certain other formalities.
To clear road taxes in your new state of residence, you must first cancel the vehicle's current registration in the previous state. In addition, you must get a no-objection certificate from the relevant RTO about registration transfer. Before receiving a new registration number for their car or motorcycle, owners must submit this NOC, along with the required road taxes, to the new state's RTO. It's vital to remember that second-time registration and payment of road tax are only required when owners are permanently moving from one state to another.
You would not have to pay such taxes if you were only visiting another state for a few days. You can also ask for a refund of the excess tax paid in the earlier state of residence by submitting the required documents in the old RTO.
The road tax is paid once for private or non-commercial vehicles, and it is paid monthly, bi-annually, or annually for commercial and passenger vehicles. Below are the figures from the state of Delhi
|STATE||ROAD TAX SLABS|
|Individual Registration( State of Delhi)||Car (up to 6 Lakhs) --- 4%(Petrol) 5% (Diesel) |
Car ( 6 - 10 Lakhs) --- 7%(Petrol) 8.75% (Diesel)
Car (Above 10 Lakhs) --- 10%(Petrol) 12.5% (Diesel)
Electric Cars( Any value) --- Zero Road tax
|Company Registration( State of Delhi)||Car (up to 6 Lakhs) --- 5%(Petrol) 6.25% (Diesel) |
Car ( 6 - 10 Lakhs) --- 8.75%(Petrol) 10.94% (Diesel)
Car (Above 10 Lakhs) --- 12.5%(Petrol) 15.625% (Diesel)
Electric Cars( Any value) --- Zero Road tax
|TWO WHEELERS||ROAD TAX SLAB|
|Two Wheelers (till 25000 INR)||2% of Vehicle cost|
|Two Wheelers ( 25000 INR- 40000 INR)||4% of Vehicle cost|
|Two Wheelers ( 40000 INR- 60000 INR)||6% of Vehicle cost|
|Two Wheelers ( > 60000 INR)||8% of Vehicle cost|
Maharashtra's road tax regulations are governed by the Maharashtra Motor Vehicles Taxation Act, 1958. The following are some of the most important road tax metrics in Maharashtra:
|Vehicle weight||Amount (INR)|
|Less than 750 kg||880|
|Greater than 6000 kg but less than 7500 kg||3450|
|Greater than 16500 kg||8510+ 375 for every 500 kg in excess thereof|
Based on Class of vehicle
|Three seater including driver||160 each seat/ year|
|Six seater including driver||600 each seat/ year|
Similarly, different states use different parameters to calculate road tax, and this tax helps the government to provide better infrastructure to the citizens.