alexa

Search in Indianmoney's WealthPedia

Home Articles Road Tax in Bangalore - Karnataka Road Tax

Road Tax in Bangalore - Karnataka Road Tax

IndianMoney.com Research Team | Posted On Monday, October 22,2018, 04:12 PM

5.0 / 5 based on 1 User Reviews

Road Tax in Bangalore - Karnataka Road Tax

 

 

Motor Vehicles Tax, or Road Tax as it is commonly known, is the tax which must be paid on registered vehicles in India. It is a state level tax, which means that it is payable to the State government, and hence, the tax rates vary across states. In Karnataka, Road Tax is determined by the Karnataka Motor Vehicles Taxation Act, 1957.

Want to know more on Investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

You May Also Watch:

Iframe Content

Road Tax in Bangalore - Karnataka Road Tax

How is the Tax calculated in Karnataka?

The Karnataka Motor Vehicles Taxation Act has gone through a few amendments, most recently in 2014. The Act had laid down guidelines for taxation of all vehicles sold / registered in the state, and vehicles registered outside the state, but operated within the state. Amount of tax charged depends on cost of vehicle, age of vehicle, date of registration, seating capacity, engine capacity, purpose of vehicle, and place of manufacture.

See Also: BBMP Property Tax

Tax on Two-Wheelers

                                                           New 2 Wheelers

Category of Vehicle

(Cost)

Lifetime Tax

(% of cost)

Cost Rs 50,000 and below

10% of vehicle cost

Cost Rs 50,000 to Rs 1,00,000

12% of vehicle cost

Cost Rs 1,00,000 and above

18% of vehicle cost

Vehicle that runs on electricity

4% of vehicle cost

 

                      Pre-registered vehicles (Age from month of registration)

Category of Vehicle

(Age)

Lifetime Tax

(% of tax on new vehicle)

Up to 2 years

93%

2 years to 3 years

87%

3 years to 4 years

81%

4 years to 5 years

75%

5 years to 6 years

69%

6 years to 7 years

64%

7 years to 8 years

59%

8 years to 9 years

54%

9 years to 10 years

49%

10 years to 11 years

45%

11 years to 12 years

41%

12 years to 13 years

37%

13 years to 14 years

33%

14 years to 15 years

29%

15 years and above

25%

SEE ALSO: MCLR Rate - Impact of MCLR on Home Loans

Tax on Four-Wheelers

Four-wheelers in this category include Motor Cars, Omni Buses, and Private Service Vehicles having floor area up to 5 square meters.

                                                      New 4 Wheelers

Category of Vehicle

(Cost)

Lifetime Tax

(% of cost)

Cost Rs 5,00,000 and below

13% of vehicle cost

Cost Rs 5,00,000 to Rs 10,00,000

14% of vehicle cost

Cost Rs 10,00,000 to Rs 20,00,000

17% of vehicle cost

Cost Rs 20,00,000 and above

18% of vehicle cost

Vehicle that runs on electricity

4% of vehicle cost

 

                   Pre-registered vehicles (Age from month of registration)

Category of Vehicle

(Age)

Lifetime Tax

(% of tax on new vehicle)

Up to 2 years

93%

2 years to 3 years

87%

3 years to 4 years

81%

4 years to 5 years

75%

5 years to 6 years

69%

6 years to 7 years

64%

7 years to 8 years

59%

8 years to 9 years

54%

9 years to 10 years

49%

10 years to 11 years

45%

11 years to 12 years

41%

12 years to 13 years

37%

13 years to 14 years

33%

14 years to 15 years

29%

15 years and above

25%

Tax on Imported Vehicles

The cost on imported vehicles is determined by calculating the total cost incurred in importing the vehicle. Total import cost includes original value of vehicle, as indicated in the Bill of Entry, Customs Duty, Freight Charges, and any other taxes, duty and penalty levied.

Tax on Vehicles registered in the Other States

Currently, people who have brought vehicles into Karnataka, which were registered outside the state, must pay Lifetime Road Tax in Karnataka within 1 year of the vehicle being in Karnataka. However, this may soon become a thing of the past if all the state governments implement the recommendations of a group of state transport ministers, who met in Guwahati. The group has drawn up suggestions that transfer of vehicles between states must be made seamless through an online process and the state transport ministries must set up a system of transfer of tax from the state of origin to the destination state, so that the vehicle owner is not liable to pay tax a second time.

How to pay Road Tax in Karnataka?

Road Tax in Karnataka can be paid by visiting a nearby Regional Transport Office (RTO). Documents like registration certificate, invoice obtained at the time of purchase, insurance certificate and so on are required. A form needs to be filled with details like name, address, registration number, and insurance number. Based on the details entered in the form, tax liability is computed. Payment can be done either in cash or by Demand Draft (DD).

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Be Wise, Get Rich.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.