Road tax has to be paid to the Indian government periodically whether it levied by the central, state or local government. The lifetime tax has to be paid again if the owner has transferred the vehicle from another state in addition to the state entry tax. The road tax is payable at the RTO in the owner’s area. Refund of road tax can be claimed if the owner submits the relevant documents in the RTO office.
The road tax refund can be claimed on the following grounds:
- If the owner returned the taxation card along with the registration certificate.
- The certificate of registration for the vehicle was denied to due to some reason.
- If the motor vehicle in question should be levied a lower rate of tax than it is currently being charged.
- If the owner of the vehicle has paid more tax than he or she has to pay.
- For a road tax refund to be claimed, the vehicle has to be registered in the new state first in case of a transfer. The list of relevant documents to be submitted at the RTO office to claim a road tax refund are:
- A copy of either the new or old smart card in addition to a notarized copy of the same.
- The impression of the chassis number of the vehicle.
- Certificate of No objection for the transfer of the vehicle from one state to another.
- Certificate of insurance of the motor vehicle.
- A copy of the receipt of the road tax paid by the owner of the vehicle in the new state.
- A copy of the receipt of the road tax paid by the owner of the vehicle in the old state where he or she used to reside.
- Form DT and RTO Form 16 are required to be submitted as applications.
- Proof of address of the owner that will also act as the proof of migration form the old state to the new.
- A request letter by the owner needs to be submitted to claim the road tax. In addition to this, the bank account and the address to which the cheque has to be sent should also be mentioned.
- For residents of Karnataka, an intimation is to be sent to CRTI stating that registration of the vehicle has been completed.
1. If a person buys a used car and then claims the road tax refund for it, will he or she be successful in the claim?
No. For a person to successfully claim road tax refund, he or she should be the original owner of the car. Another important point to note is that during the transfer of vehicle from one state to another, the name of the owner should always be the same otherwise the road tax refund claim will be considered void.
2. What is the maximum time period the owner can ask for a refund of road tax after the registration of the vehicle has been completed?
The answer to this question varies for different states. For instance, if the owner of the vehicle is in Maharashtra, he should ideally claim for a refund within 6 months of the registration of the vehicle.
3. Can a refund of the road tax can be claimed if it is being paid despite the vehicle not being registered in the new state?
No, the primary condition for the road tax refund claim is that the vehicle should be registered in the new state or the old registration should be cancelled.
4. How is the road tax refund amount calculated?
The road tax refund amount depends on the time period for which the owner has been paying the road tax for. Time period is nothing but the number of years that have passed since the vehicle had been first registered in the state to the time a refund request was raised. For instance, the owner of the vehicle has been paying the road tax for a time period of 5 years, he or she will be liable to 66 percent of the total amount paid as tax. Smart card fees and State MCD parking are exempted from the tax refund claim.
5. Can a person claim for road tax refund online?
No, road tax refund claim can be only made by submitting the relevant documents at the RTO office.