India, as a nation, has a sizable network of highways connecting many states and the various cities within each state. The road network is expanded, maintained, and upgraded with the money collected from road taxes.
The state government of every state imposes a Road Tax or Motor Vehicles Tax on the purchase of a new vehicle, be it a business or private vehicle. Funds from these taxes allow the government to construct and maintain roads and highways. It's also used for various emergency and evacuation services alongside these roads.
Why you should pay your road tax online
Before online payment of road tax was an option, car owners had to visit their nearest RTO to pay their taxes physically. But like most other things, road tax online payment is now just a few clicks away. Along with your pending e-Challans, you can also pay your road tax through the Ministry of Road Transport and Highways' official website.
Given the online road tax payment option, most people skip the line and pay directly from their smartphones. Like offline challan payment, offline road tax payment has also become obsolete.
Apart from road construction and maintenance, road tax allows the government to set up infrastructure to prevent road accidents and provide immediate care to accident victims. Since the demand for roadways increases with the number of cars on the roads, road tax is a significant source of revenue for the government.
Following Section 39 of the Motor Car Taxation Act of 1988, car owners must pay a certain amount as road tax when purchasing a new vehicle. The Government of India has launched the smartphone app mParivahan for fast and easy online road tax payments.
How to pay road tax online
After buying a new vehicle, a road tax form containing the specific tax amount must be properly filled out by vehicle owners at their nearest RTO after buying a new vehicle.
Alternatively, you can complete road tax online payments through the mParivahan app or the Parivahan portal:
- Open the mParivahan app or the Parivahan website
- Select Vehicle Related Services from the list of online services
- Enter your vehicle registration number, select your state, and then your nearest RTO
- Click on Proceed, and a new webpage should open
- Click on the 'Pay Your Tax' option
- Verify your car details
- Type in your registered mobile number
- You'll get an OTP (One-time Password) on your phone. Enter the OTP in the relevant text box
- Select 'Road Tax' from the drop-down menu
- Choose a payment method and initiate the transaction
Upon successful completion of the payment, you should get a confirmation email and SMS. Please keep it for future reference.
Types of road tax
All two-wheelers, four-wheelers, and other commercial and personal vehicles are subject to road tax.
- The state government is responsible for collecting toll taxes, state sales taxes, passenger and goods taxes, and motor vehicle taxes, either annually or in a lump sum.
- Based on the model and kind of vehicle, the federal government imposes customs duty, central excise, central sales tax, GST, and various supplementary cess charges.
Apart from road taxes, challans are another way for the government to collect road maintenance and safety funds.
Road tax penalty�
If road taxes are not paid in time, tax evaders will be fined. Charges are determined as follows:
- For first-time violators, the tax amount for the car is payable for two quarters
- Serial violators will face fines that cannot be less than the annual tax on a car, and they may even reach twice that amount.
- Fines cannot be lower than Rs. 300 and may include a one-time annual tax. This fine can go up to twice the annual tax amount for repeat offenders and cannot be less than Rs. 500
If you miss a road tax payment, it's best to pay at the earliest to avoid further penalties.
Conclusion�
Road tax collection is one of the most important functions of regional RTO offices. You must pay your road tax on time if you own a car. The provision to pay road taxes online means you don't even have to step out of your house to pay your taxes. For more information about your nearest RTO and road tax, visit the Park+ website or download the Park+ app.
