Our WhatsApp number cannot be used for calls. This is a chat only number.
Ever wondered how the government affords to construct roads and initiate repairs when necessary? Well, the state and Centre do so with the money you pay as taxes.
More specifically, road taxes help the government ensure frequent repairs whenever the need arises.
The next time you see potholes being repaired or concrete being laid on roads, you know it is your contribution along with millions of others being put to use. Road tax is levied on every vehicle owner in India.
However, if you do not understand the calculation part of this taxation, specialised tools like the road tax calculator can help significantly.
Still, before understanding how this particular calculator works, here is a brief introduction about road tax in general.
State governments levy road taxes, also known as Motor Vehicles Tax, on individuals who own a motorised vehicle in India.
Generally, this tax is paid when you purchase the vehicle in question. However, since the state governments are in charge of collecting such taxes, the actual value can differ based on the state where you buy the car or bike.
To acquire a better insight into how vehicle road tax is calculated, you must know the different factors that play a significant role.
An individual can calculate road taxes on his/her vehicle purchase, by considering the following factors:
Before using a road tax calculator, be sure to check your state’s taxation norms and rates. This should establish how much you would need to pay.
Suppose you have borne road taxes at the time of registering a car in one state. However, after a few years, if you need to move to a different state, you would have to comply with the road tax laws of that state as well.
Therefore, be ready to pay taxes on the same car once again, when re-registering the vehicle.
However, the transfer process is not that simple. Other formalities are also involved with this procedure.
For example, before you can clear road taxes in your new state of residence, you would first need to cancel the vehicle’s existing registration in the other state. Also, you must acquire a no-objection certificate regarding registration transfer from the concerned RTO.
Owners would need to submit this NOC, along with the road taxes, to the new state’s RTO before he/she can avail the new registration number for their car or bike.
An important point to remember here is that deregistration and payment of road tax for the second time is only necessary when owners are permanently shifting from one state to another.
If you are simply visiting another state for a few days, you would not need to bear such taxes again.
To simplify understanding of how road tax calculators work, here are three different states and their taxation norms, along with examples.
Thus, you cannot find one road tax calculator that suits all in India, since rates and calculation methodologies differ significantly based on which state you buy the concerned car.
Look at the taxation rates for your state to assess how much you would need to pay.
Please try one more time!
Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
Continue with {{bikeCtrl.lastVisitedData.lastVisitedUrl.indexOf('DigitPaymentGateway/payments')
!== -1 ? 'payment completion': 'previous choice'}}
