Are you looking for a Refund of Road Tax amount as originally paid to RTO. Know Process note for Refund as applicable after vehicle registered in New State
RTO Road Tax Refund Process - Updated in 2022
Are you in a Transferrable job and planning to move your Car to Other State and apply for New Registration Mark
If yes, then you need to pay Hefty Road Tax again for re-registration of Car in New State. But also concerned on how to apply for refund as road tax as what paid in First State
Well Here are General Guidelines for Refund of Road Tax presented in form of FAQs
Q. When Can Application for Refund of Road Tax be Made
A. The Tax Refund can only be applied Once the Vehicle is registered in New State
So only after your vehicle is re-registered in New State with a new Registration Mark applied to it, then only refund of road tax can be made.
Q. What Documents need to be Submitted for Refund of Road Tax
Some documents / forms needs to be submitted for Tax Refund
- Car Chassis Imprint
- New Smart Card (Notarized Copy) & Old Smart Card (Original or Notarized copy as available)
- Valid Insurance Copy, PUC Copy
- State Transfer NOC (Photocopy)
- Road Tax Receipt as originally paid in First State where vehicle was registered
- New Road Tax receipt photocopy as Paid
- ID Proof with New Address Proof as Proof of Migration
- RTO Form 16, RTO Form DT as application for Tax Refund
- Request letter for refund along Bank Account Number / Address on which cheque needs to be sent
- New Registration Authority has to send CRTI Intimation that vehicle is registered in New State (applicable only in Karnataka)
All This all need to be deposited with Notarized Copies of Photocopy along with self affixed stamp with equivalent value of Registered Post on it to the original RTO Office where vehicle is registered.
Q. If Buying a Used Car and registering in New State will Tax Refund be applicable ?
A. No - Tax Refund is not applicable and is thus not payable to Second Owner (or subsequent owners). Only, the Original Owner can apply for Tax Refund. In case you are Second Owner and buying such car for re-registration in Other state - the Tax refund is not applicable
This also is applicable even in Company Cases - who give car to employees for usage and later on ask them to buy back. Been the employee would be second owner as per RC - the Tax as originally paid by the Company will not be payable.
The Refund Guidelines - Road Tax is subject to be refunded
> Only in name of original owner who has initially paid in road tax
> Provided - that the original Owner who registers the vehicles, takes NOC for shifting vehicle in other State on his/her name and re-register the vehicle in his / her name.
Thus - For refund of Tax - the Original Owner name should be same as in First State and Second State
Q. Is there any Time Limit for applying Tax Refund
A. Yes - but timelines varies from State to State. For Instance in Maharashtra - RTO can decline in Tax Refund application - if same submitted after 6 months of Obtaining in State Transfer NOC. So - better to check
Q. Is Road Tax Refund applicable, if the vehicle is not registered in New State but only Tax Paid in New State
A. To the best of our info - No, in that case Road Tax will not be refunded. Either the vehicle has to be mandatory registered in new state or the Old Registration has to be applied for cancellation post which only the refund application will be accepted for payment of Pro Rata Tax Amount
If you thinking of Cancelling Vehicle registration - then as per Motor Vehicle Act - only in below cases car registration can be cancelled by RTO as mentioned in Brief:
1. If a motor vehicle has been destroyed or has been rendered permanently incapable of use
2. If the Vehicle moved in another state and re-registered in New State with necessary Confirmation and documents pertaining same been furnished
3. If RTO Observe that vehicle is in such a condition that it is incapable of being used or its use in a public place would constitute a danger to the public
4. If a registering authority is satisfied that a motor vehicle has been permanently removed out of India
5. If the Car Ownership Documents at a later date found Fake or with Forgery
Q. What is the Basis of Road Tax Refund Amount
A, Road Tax will be refunded on Pro rata basis of 15 yrs - basis registration date - till date of application for refund. For instance - if you applied for same after 5 yrs then approx 66% of original road tax paid will be refunded. The Pro Rata will be done based on Road Tax Amount. State MCD Parking Fees, Smart Card registration fees is not refunded
Q. Is Tax Refund applicable in all States. Is Tax Refund Process Online
A. Yes - Its irrespective if you are from Metro Cities like Delhi, Mumbai, Bangalore, Hyderabad. Even if you are in Tier - II, Tier - III Cities - Tax refund can be applied in
Unfortunately - there is no Online Process as of now for Tax refund. The Documents have to be submitted in person to RTO
