Process of RTO Road Tax Refund. FAQs and Documents
Are you looking for the Refund of Road Tax amount paid originally to RTO? Here is a quick round up for you to know the process applicable after registering the vehicle in new state.
Road tax – a tax to be paid periodically on motor vehicles for using the public roads. Road tax is imposed in India by the central and state government and also by the local bodies.
If the vehicle is used in a state which is not the one where it was registered, then lifetime tax has to be paid again in the state where the car is being used. The state entry tax is also to be paid. After registration all the road taxes are to be paid at the RTO (regional transport office) in your area.
Process of Road Tax Refund
Only after the Vehicle is registered in New State, the Tax Refund can be applied.
Documents / forms to be submitted for Tax Refund –
» Notarized copy of New Smart Card & Original or Notarized copy of Old Smart Card (as available)
» Imprint of Car Chassis
» NOC of State Transfer (Photocopy)
» Copy of New Insurance & PUC
» Photocopy of receipt of New Road Tax Paid
» Receipt of Road Tax paid originally in First State where vehicle was registered
» RTO Form DT, RTO Form 16 as application for Tax Refund
» New Address Proof as Proof of Migration along with ID Proof
» Request letter for refund along with Bank Account Number / Address on which cheque needs to be sent
» (Only applicable in Karnataka) New Registration Authority has to send CRTI Intimation that vehicle is registered in New State
To the original RTO Office where vehicle is registered, all these have to be submitted with Notarized Copies of Photocopy with self-affixed stamp of equivalent value of Registered Post on it
FAQs on Road Tax Refund
Q. Will Tax Refund be applicable, if buying a Used Car and registering it in the New State?
A. No – Tax Refund is not applicable on such cars and hence, is not payable to Second Owner (or subsequent owners). Tax refund can only be applied by the Original Owner. Tax refund is not applicable in case you are not the First Owner and buying a car for re-registration in other state.
This is applicable in Company Cases also – where car is given to employees for usage and later they are asked to buy it back. As per RC, the employee will be the second owner – the Tax originally paid by the Company will not be payable.
The Guidelines for refund- Road Tax is subject to be refunded
> Only in the name of original owner who has initially paid the road tax
> Provided that the original Owner who registers the vehicle, takes No Objection Certificate for shifting the vehicle in other State on his/her name and re-registers the vehicle in his/her name.
Thus for the refund of tax, in the first and second state, the name of Original Owner should be same.
Q. Is there a Time Limit for applying Tax Refund?
A. Yes – but each state has a different timeline. For example in Maharashtra – RTO can decline the Tax Refund Application if it is submitted after 6 months of obtaining the State Transfer NOC.
Q. Is Road Tax Refund applicable, if the vehicle is not registered in New State but only the Tax is paid in New State?
A. No – in such a case Road Tax will not be refunded. Either the vehicle has to be mandatorily registered in the new state or the Old Registration has to be cancelled. Only after that the refund application will be accepted for payment of Tax Amount on Pro Rata basis.
As per Motor vehicle Act, then only in following cases car registration can be cancelled by RTO:
1. If the vehicle is destroyed or is rendered incapable of use permanently
2. If the Vehicle is moved in other state and is re-registered in the New State with required confirmation and documents, given that the same has been furnished
3. If RTO observes that the vehicle is in a condition that it is inept of being used or its use would create a danger to the public
4. If the registering authority is satisfied that the vehicle has been removed permanently out of India
5. If the Documents of Car Ownership are found Fake or with Forgery at a later date
Q. What is the Basis of Road Tax Refund Amount?
A. Refund of Road Tax will be Pro rata basis of 15 years based on the registration date till the date of application for refund. For example – if you apply after 5 years, then approx. 66% of original road tax paid will be refunded. Based on Road Tax Amount, the Pro Rata is done. Smart Card registration fees and State MCD Parking Fees is not refunded.
Q. Is Tax Refund Process Online? Is Tax Refund applicable in all States?
A. No – Unfortunately as of now, no Online Process for Tax Refund is available. The documents are to be submitted to RTO in person.
Yes – It is irrespective of the Metro Cities like Mumbai, Delhi, Hyderabad and Bangalore. Even if you are from Tier – II, Tier – III cities, tax refund can be applied.
Bought used car (I’m second owner)in city 1, been using it for past 3 years and now applied for NOC and got it registered in city 2 on my name again(no ownership change in city 2 ). Can i apply for refund ?
The ownership in the city1will be automatically cancelled once the formalities in the city 2 is completed. But how you’re eligible for refund when the originally road tax wasn’t paid by you but by the first owner.
Dear sir/madam,
I’m a owner of few goods carrying vehicles. Few among of them was sold out to other person which age was more than 15years at the time of selling. Please suggest can I liable to pay tax amt till date.
NOTE – By lack of knowledge I’m not informed rto regarding this.
Reference number xxxxxx sir power bank charge nhi de rha 10 minutes bhi nhi chal hai hmko exchange kar dejye..
I bought a new car at Guwahati Assam in the year 2010 and paid the life time road Tax for 15 years. In 2015 I got transferred and settled in Lucknow UP and got my car registered in 2015 and paid again the Life Time Road Tax at RTO Lucknow. Whether I am eligible for a refund.
Yes, why not.
Hello, hi
i have purchased a new car in MAY 5th and paid 96,000 as ROAD tax for Rs.5,17,000
can i get the refund ???
Location : Bangalore
Date : 04-05-2017 [registered]
got ID after 60 days
please let me know…!!
Ok you have provided the details for the car,what about Bike.Is NOC needed for BIkes and if needed can that old road can be refunded.
Dear Sir/Madam,
If, I have a private car in jharkhand state with proper papers., and I am going to odisha for two or three weeks for some regions. then I will pay tax or not. pl. give me right option.
With GST claiming to be pan India tax, Govt. should abolish this reregistration method
Next state registration takes a year then how the tax refund time limit can be fixed by state?
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Electrician job
Electrician
Electrician wekenci
I was in Baroda in some ,1998 .My car was impounded by RTO. Mr panda for paying road tax of Gujarat .
Paid Rs ,8000 again
It is ridiculous being defence personal keep moving Every second year to pay / getting refund of tax.
A Noida resident using car in Delhi or vise versa how can pay road tax for two states
like insurance,driving licence, etc., are valid thro -out india ,the same way road tax also to be made valid thro-out india,or rto s to collect the tax amount from the original rto, once the vehicle migrated to their state
if i buy a car from some other city do i have mandatory register in the new city for eg; i live in Hyderabad and wish to buy a used car from Delhi so do i have to pay the road tax / state tax and registration again in Hyderabad. pls suggest.
I bought a bike in Delhi in May 2016, now i am using it in Bihar. Do i need to re-register it in Bihar? I didn’t informed to Delhi RTO and not applied for NOC
I have paid road tax in bilaspur dist .state chattisgarh
in the bilaspur I think govt. Should paid road tax for people because thousands of bikes and vechicles have been damaged due to wrost quality of road …
Nothing seems to be more complicated than this. The weak link in this is the No Objection from the RTO where the vehicle was originally registered. This is almost impossible to get and they make you run around and eventually just do not give the certificate saying the procedure requires police clearance which is the main cause of the weak link. To get the police to check the records (mind you , you have to run around for this and RTO will do nothing) is the point when you give up. Anybody has a better experience?
I have a hatchback of UP registration but I am now moving to Pune. I could not get the NOC for my car as its still in finance. In this case how does one travel to another city and still follow the RTO guidelines by paying taxes and other duties
U can obtain state transfer noc from finacer as i have taken it by paying refundable security dep and can apply the new no in new state with hp.
I purchased 2nd hand Car hyd registration, and I am staying in hyd. Car using in Hyd only 1st owner get rufund of road tax amount. what about 2nd owner? Again 2nd owner to pay Road Tax to RTO. Pl. clarify.
Hi I have a honda activa(2 wheeler) registered in kolkata(West Bengal) Rto and I am using the vehicle in pune(maharashtra). What’s the process to get the registration changed and how much amount I need to pay for it.
I have purchased me vehicle from Tata motors on October of 2016 can I claim tax refund now.
My name Car booked but I am not gating ‘re fund
I have purchased me vehicle from Tata motors on October of 2015 can I claim tax refund now.
licance banbane ke liye
I am from Mumbai Maharashtra, i purchase a company registered car, known is transferred in my name (individual name), so can i get the different tax refund from Maharashtra rto
My husband is working in Army. We bought xcent car from Allahabad and Registration we did in Maharashtra around Rs89000 we paid for Road tax Is it possible to get back
Has anyone successfully got a refund? I see there’s a lot of time consuming process but my concern is have anyone actually received refund.