How to Apply for RTO Road Tax Refund?

Have you recently relocated your car from one state to another?

If yes, you can claim a road tax refund on the car when it is registered in the new state.

Want to know how?

Keep reading to learn more about the said tax and how to avail it.

What Is RTO Tax Refund?

Road tax is paid periodically by vehicle owners to the central, state, or local government. This is an obligation against using public roads.

This lifetime tax and state entry tax needs to be paid if an owner transfers his/her vehicle from another state. You need to pay the tax in the nearest RTO office.

The Indian government has allowed road tax refund on vehicles transferred from one state to another to aid the taxpayers.

However, you need to complete the vehicle re-registration process in the new state before claiming a refund.

Additionally, you need to fulfil certain parameters to claim the said tax benefit.

Procedures to Apply for a Road Tax Refund

You can claim a road tax refund on a vehicle when the old registration has been cancelled or after it has been registered in the new state.

Additionally, you can apply for a road tax refund in the old state where a vehicle was registered.

However, there is no method for road tax refund online. Hence you need to submit documents to the RTO in person.

It should be noted that there is a time limit against the refund application. This time frame depends on state policies.

For instance, you can claim the refund within six months from the transfer of a vehicle or with a NOC.

Making an application after the time frame will be futile. The RTO can decline the application and obstruct the road tax refund procedure.

Hence, it is vital to abide by the rules and keep the necessary documents handy.

Documents Required to Apply for Road Tax Refund

You need to submit official papers at the RTO office for a road tax refund.

These include -

A request letter by a vehicle owner. It should include the address and bank account to which a cheque has to be sent.
Vehicle chassis Imprint
RTO Form 16
New PUC copy
Copy of Form 28
New Insurance copy
Original copy of an old smart card
Road tax receipt paid in previous state
Copy of new road tax receipt
Proof of migration or address proof
Notarized copy of a new smart card
An envelope having a self-affixed stamp

Before making an application, you should be clear about the refund calculation.

Under Which Circumstances You Can Claim Road Tax Refund?

You can claim a road tax refund under the following conditions -

The vehicle registration and documentation in the new state is complete.
Residents in Karnataka need to send intimation to CRTI stating that a vehicle registration has been completed.
RTO Form 16 and Form DT are attached with an application.
A motor vehicle in question would be levied a lower tax rate than the current rate.
Individuals paying more tax can claim a refund.
If a vehicle owner has returned a registration certificate and taxation card.
When the registration certificate of a vehicle was denied due to some reason.

These are some circumstances under which you can claim road tax refunds. Let’s check how to get a road tax refund to streamline the process further.

How Is Road Tax Refund Amount Calculated?

The road tax refund amount depends on road tax payments. Here the vehicle registration date and road tax refund date is crucial.

For instance, a vehicle owner paying road tax for five years will receive 66% of the total amount paid as tax. This refund doesn’t include State MCD parking and smart card fees.

Hope the discussion above answers your queries concerning a road tax refund. Don’t forget to check updates on regulations before making a refund application.

Frequently Asked Questions

✓ Can I claim a road tax refund online?

No, you can't claim road tax refund online as there is no portal for this purpose. Instead, you need to submit relevant documents at an RTO office for said requirement.

✓ Does the government allow road tax refunds in all states?

Yes, you can claim road tax returns in all states. However, you need to visit the nearest RTO with relevant documents.