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Home Articles Road Tax Rules and Regulations in Karnataka

Road Tax Rules and Regulations in Karnataka

IndianMoney.com Research Team | Updated On Wednesday, May 15,2019, 04:44 PM

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Road Tax Rules and Regulations in Karnataka

 

 

Road tax is a compulsory tax paid by vehicle owners to the state authorities. Road tax is paid while purchasing a vehicle. However, the tax differs across states. In some states, road tax is high whereas in some states, there’s lower road tax on registration of vehicles. Road taxes are levied according to the Central Motor Vehicles Act, 1988.

What is Road Tax?

Road tax can simply be defined as a tax that must be paid to the state authorities in order to drive your vehicle on public roads. The percentage of road tax varies from one state to another.

Who Levies Road Tax?

Road tax is a type of tax imposed by the government on two wheelers and four wheelers used for private transportation. Road tax is also levied on all kinds of commercial vehicles and trucks. Road tax is imposed by:

  • The state government
  • The central government
  • Local authorities

Road Tax - A State Level Tax:

The NHAI (National Highway Authority of India) is responsible for maintaining the highways which account for 20% of the roads in India. The remaining 80% of the roads fall under the purview of the state government, which is responsible for construction and maintenance of these roads. The cost of construction of these roads is borne by the state government of each state separately.

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Road Tax Rules and Regulations in Karnataka

Who has to pay the Road Tax?

Any individual purchasing a commercial or private vehicle must pay road tax above the ex-showroom price. The price of the vehicle along with the road tax is known as ‘on road price’ of the vehicle. The calculation of road tax is based on the following:

  • Seating capacity of the vehicle
  • Age of the vehicle
  • Weight of the vehicle
  • The Engine capacity of the vehicle.

How to Pay the Road Tax?

Online Method: To pay the road tax online, you must visit the official website of the transport department of the state government where the vehicle is registered. To pay the tax online you must enter the transport registration number and chassis number and then click on the submit button. You must then select the mode of tax payment and enter all payment details to complete the payment process.

Offline Method:  The payment of road tax can also be done by visiting the nearby RTO office. You must provide the vehicle registration documents along with other supporting documents to the RTO executive. The executive will hand over a form where you must provide personal details along with your vehicle’s registration number and insurance number. Tax is calculated based on the details submitted. You must pay the tax either in cash or through bank DD which can be deposited at the cash counter of the RTO. On successful payment, you will receive a receipt and a tax card which mentions the amount of tax paid and the tenure for which it is paid.

Road Tax in Karnataka:  

The Karnataka Road Tax Rules are stated under the Karnataka Motor Vehicles Taxation Act, 1957. The act has been amended several times thereafter:

Tax Percentage for Two Wheelers:

Age of the vehicle

Two wheeler price less than Rs 50,000

Two wheeler price more than Rs 50,000 but less than Rs 1 Lakh

Two wheeler price more than Rs  1 Lakh

Electric vehicle ( Two wheeler)

New vehicle

10% of the vehicle’s cost

12% of the vehicle’s cost

18% of the vehicle’s cost

4% of the vehicle’s cost

Not more than 5 years

75%

75%

75%

75%

More than 15 years

25%

25%

25%

25%

Tax Percentage for Four Wheelers: 

Age of the vehicle

 Four wheeler price less than Rs 5,00,000

 Four wheeler price more than Rs 5 Lakh and  less than Rs 10 Lakh

Four wheeler price more than Rs 10 Lakh and  less than Rs 20 Lakh

Four wheeler price more than Rs 20 Lakhs

Electric vehicle ( Four wheeler)

New vehicle

13% of the vehicle’s cost

14% of the vehicle’s cost

17% of the vehicle’s cost

18% of the vehicle’s cost

none

Not more than 4 years but less than 5 years

75%

75%

75%

75%

75%

More than 15 years

25%

25%

25%

25%

25%

Life-Time Tax Payment:

Vehicle owners, whose vehicles are registered in other states and are being used in Karnataka for more than a year, must pay life-time taxes. Life-time tax is not applicable on vehicles that are being operated in Karnataka for less than a year.

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