Everything You Need to Know About RTO Road Tax

RTO road tax, often referred to as RTO (Regional Transport Office) tax, is a crucial aspect of vehicle ownership in India. It’s a one-time or periodic tax levied by state governments for using public roads. Whether you are purchasing a new car or relocating your vehicle to a different state, understanding the RTO road tax details is essential to avoid penalties and ensure compliance with Indian road regulations.

What is RTO Road Tax?

RTO road tax is imposed under the Motor Vehicles Act, 1988. The state government where the vehicle is registered collects this tax, which goes towards maintaining and expanding road infrastructure. The tax amount varies depending on several factors such as:

1. Type of Vehicle: Two-wheelers, cars, commercial vehicles, etc.
2. Vehicle Cost: The ex-showroom price of the vehicle.
3. Engine Capacity: Higher engine capacity often results in higher tax.
4. Usage Purpose: Private or commercial use.
5. State of Registration: Different states have different tax rates.

How Is Road Tax Calculated?

• Type of Vehicle: Two-wheelers, four-wheelers, commercial vehicles, and electric vehicles have different rates.
• Engine Capacity: Higher engine capacity vehicles (measured in cc) generally attract higher taxes.
• Vehicle Cost: The tax may be a percentage of the vehicle's ex-showroom price.
• Usage: Private vehicles and commercial vehicles have different tax rates.
• State of Registration: Each state in India has its own road tax structure, resulting in varying rates.

Road Taxes by State

India's state governments are responsible for regulating road tax, which results in regional variations in rates and payment methods. The type of vehicle, its price, its use, and state policies are just a few of the variables that affect road tax rates. Below are some examples of how road taxes differ by state:

• Maharashtra:

  • For vehicles costing less than ₹10 lakhs, the tax is 7% of the vehicle's cost.
  • For vehicles costing ₹20 lakhs or more, the tax increases to 12-13%.
  • Two-wheelers are taxed between 8-10%, depending on their price.

• Karnataka:

  • For private cars, the tax rate ranges from 13% to 18% of the ex-showroom price.
  • Two-wheelers are taxed based on their engine capacity, with higher rates for larger engine sizes.

• Delhi:

  • The tax rate varies between 4% and 12.5%, depending on the vehicle's ex-showroom price and fuel type.
  • Diesel vehicles typically attract higher tax rates.

• Tamil Nadu:

  • A one-time road tax is applicable, ranging from 8% to 15% for cars.
  • Commercial vehicles may have an annual tax payment structure.

• Kerala:

  • The road tax is charged as a percentage of the ex-showroom price, ranging from 6% to 15%.

Electric vehicles (EVs) enjoy reduced or zero road tax in many states to encourage their adoption.

Types of Vehicles and Their Road Tax Rates

• Two-Wheelers:

  • Tax is based on the engine capacity and price.
  • Example: Smaller scooters (under 125cc) attract lower taxes, while high-end bikes (above 350cc) are taxed at higher rates.

• Private Four-Wheelers:

  • The tax is a percentage of the ex-showroom price.
  • Larger vehicles like SUVs or luxury sedans usually attract higher rates.

• Commercial Vehicles:

  • Annual or quarterly tax is applicable, depending on the vehicle's purpose (e.g., goods transport, passenger services).
  • Tax rates may vary based on the vehicle's weight or seating capacity.

• Electric Vehicles (EVs):

  • Most states offer significant tax benefits for EVs to promote green transportation.
  • In some states, EVs are completely exempt from road tax.

• Goods Carriers:

  • Tax depends on the weight or carrying capacity of the vehicle.
  • Heavier vehicles attract higher taxes.

• Passenger Vehicles:

  • Vehicles like buses or taxis used for public transportation are taxed based on seating capacity and usage.

How to Pay Maharashtra Road Tax Online?

Step 1: Visit the Official Portal

• Open the Maharashtra Motor Vehicle Department (MVD) website or directly access the Parivahan Sewa Portal.

Step 2: Select the Service

• Choose "Road Tax Payment" or a similar option from the list of online services.

Step 3: Enter Vehicle Details

• Provide your vehicle registration number, chassis number, and other required details.
• The portal will automatically retrieve information about your vehicle.

Step 4: Calculate the Tax

• The system will display the applicable tax amount based on your vehicle's specifications (price, fuel type, engine capacity, etc.).

Step 5: Make the Payment

• Choose your preferred payment method (net banking, credit/debit card, or UPI).
• Complete the payment securely online.

Step 6: Download the Receipt

• After payment, download and save the receipt as proof of road tax payment.
• Keep a copy of the receipt in your vehicle in case of inspections or traffic checks.

Penalties for Non-Payment of Road Tax

Failure to pay road tax can result in hefty penalties, including:

• Fines.
• Vehicle confiscation.
• Legal action.

Ensure timely payment to avoid these consequences.

Role of Vehicle Insurance

While road tax is mandatory, having a comprehensive car insurance policy is equally important. Car insurance not only provides financial protection against accidents, theft, and damages but also ensures compliance with the Motor Vehicles Act, 1988.

Royal Sundaram’s car insurance offers comprehensive coverage with many benefits. Investing in reliable car insurance offers cashless claims at 5,000+ network garages, quick claim settlement, and enhanced protection with add-on covers. Investing in reliable car insurance guarantees you peace of mind while you're driving.

Conclusion

RTO road tax is mandatory in India for all vehicle owners, varying based on vehicle type, price, and registration state. Keep receipts and documents for future reference. Combining road tax compliance with comprehensive car insurance from Royal Sundaram ensures a worry-free driving experience.