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RTO Road Tax Refund Process Explained. Documents, FAQ Queries

RTO Road Tax Refund Process Explained. Documents, FAQ Queries

Are you looking for a Refund of Road Tax amount as originally paid to RTO. Know Process note as applicable after vehicle registered in New State

 

Road Tax Refund Process

Have you recently Transferred your Car from One State / Union Territory to Other State / UNion Territory. Good news is that if you have not sold your Car, then you can apply and claim refund of Road Tax

The Tax Refund can only be applied Once the Vehicle is registered in New State

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.

 

 

FAQs Queries on RTO Road Tax Refund in 2021

 

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

RTO Road Tax Refund

 

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

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Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments

 

Comments 60

Guest - John TE on Monday, 22 November 2021 13:19

Hello,
First of all, thank you so much for posting this process of claiming the refund of the Road Tax.
I have recently relocated from Bangalore to Kochi. I have done the re-registration of my Car & Bike by paying the road tax of Kerala. Now I need to apply for a refund of road tax from Karnataka. I have seen a Form named Form-16 Rule 34(1) & DT form.
I am not able to get an idea of how to fill Form-16 as it is not mentioning anything about the refund of tax but about issuing some certificate. Can you please help me to get this filled? Also, the DT form the beginning part should I keep the old registration number or the new registration number.

Hello, First of all, thank you so much for posting this process of claiming the refund of the Road Tax. I have recently relocated from Bangalore to Kochi. I have done the re-registration of my Car & Bike by paying the road tax of Kerala. Now I need to apply for a refund of road tax from Karnataka. I have seen a Form named Form-16 Rule 34(1) & DT form. I am not able to get an idea of how to fill Form-16 as it is not mentioning anything about the refund of tax but about issuing some certificate. Can you please help me to get this filled? Also, the DT form the beginning part should I keep the old registration number or the new registration number.
Guest - Deepak Kumar Trivedi on Monday, 11 October 2021 14:01

My car is gone under total salvage loss within 1.5 years of use. Is my RTO Tax is refundable or not? Please advise me. I am residing in Rajasthan & car is also registered in Rajasthan.

My car is gone under total salvage loss within 1.5 years of use. Is my RTO Tax is refundable or not? Please advise me. I am residing in Rajasthan & car is also registered in Rajasthan.
Guest - Adhishree on Saturday, 26 June 2021 02:16

I have Jupiter bike. I applied for noc through a agent & at same time have applied for refund also. Have to move from
Karnataka to Rajasthan.Can anyone let me know how much will be the charges to get it done. The RTO agent 1600 bucks saying that the amount he needs to pay to state govt for applications. I really doubt that 1600 is hefty amount for govt work.

I have Jupiter bike. I applied for noc through a agent & at same time have applied for refund also. Have to move from Karnataka to Rajasthan.Can anyone let me know how much will be the charges to get it done. The RTO agent 1600 bucks saying that the amount he needs to pay to state govt for applications. I really doubt that 1600 is hefty amount for govt work.
Guest - Sundar on Wednesday, 14 April 2021 08:34

Hi sir
1. I owned Alto (first owner) and sold it in 4.5 years. Will I get refund of road tax?
2. I purchased new vehicle (first owner) in delhi and recently moved to Tamil Nadu. The vehicle is only 9 month old and I yet to apply for registration at TN. Will I get refund of road tax from delhi state.

Hi sir 1. I owned Alto (first owner) and sold it in 4.5 years. Will I get refund of road tax? 2. I purchased new vehicle (first owner) in delhi and recently moved to Tamil Nadu. The vehicle is only 9 month old and I yet to apply for registration at TN. Will I get refund of road tax from delhi state.
Guest - Noushad on Monday, 16 November 2020 11:46

I tried to tranfer RC book via parivahan site and paid for it above 3000 then cancel it on same
How can i get refund??

I tried to tranfer RC book via parivahan site and paid for it above 3000 then cancel it on same How can i get refund??
Guest - Raj Bahadur on Sunday, 27 September 2020 21:52

As of now sicnce the inception of RTO in Indian history nobody get the road tax refund. it is very funny, why govt is not taking any action, where ever govt as to collect the money from public that is made online, and very robust system implemented on ground like Incometax, sales tax, GST, but where ever govt had to gv the money they dont think making it transparent, and online, people keep breaking their head by going to dept and dept dont have clarity themselves. its ridiculous.

As of now sicnce the inception of RTO in Indian history nobody get the road tax refund. it is very funny, why govt is not taking any action, where ever govt as to collect the money from public that is made online, and very robust system implemented on ground like Incometax, sales tax, GST, but where ever govt had to gv the money they dont think making it transparent, and online, people keep breaking their head by going to dept and dept dont have clarity themselves. its ridiculous.
Guest - Himadri on Saturday, 17 October 2020 19:38

Very true. Rightly Said

Very true. Rightly Said
Guest - H K PRASANNA KUMAR on Tuesday, 01 September 2020 10:00

Dear Sir,

I have excess amount of INR 2100 to RTO online payment by mistake during cancellation of Hypothecation of the my vehicle. . Can I get back the excess amount paid to RTO. What is the procedure? can anyone answer my query please.

Dear Sir, I have excess amount of INR 2100 to RTO online payment by mistake during cancellation of Hypothecation of the my vehicle. . Can I get back the excess amount paid to RTO. What is the procedure? can anyone answer my query please.
Guest - Joginder Singh on Saturday, 08 August 2020 20:52

From Joginder Singh:
I did not receive any tax refund from RTO office Rewari. I went to the RTO office and met the head at their office but they denied to refund. I got demoralised, hence I left doing any query at RTO office Rewari Haryana.
Customer name : Rahul Yadav s/o Joginder Singh

From Joginder Singh: I did not receive any tax refund from RTO office Rewari. I went to the RTO office and met the head at their office but they denied to refund. I got demoralised, hence I left doing any query at RTO office Rewari Haryana. Customer name : Rahul Yadav s/o Joginder Singh
Guest - Samim Ahmed on Saturday, 21 November 2020 18:48

So sad

So sad
Guest - Krupakiran on Saturday, 05 December 2020 19:20

Sad and shame on system if case is genuine

Sad and shame on system if case is genuine
Guest - Gopal on Sunday, 29 December 2019 23:16

Hi,
I was given a company car in Feb 2011 in West Bengal, which was purchased by a finanicial leasing company at a price of Rs 6,35,000 plus VAT, totalling Rs 7,25,000, and hypothecated to it. In Jan 2016, company paid remaining amounts to leasing company and the car was transferred to the company. The company, in turn, transferred the car to me (individual owner) at a residual price of Rs 1,55,000/-. I had to pay road tax to WB (Kolkata) for registering the car in my name in Feb 2016. The car is in my name now.

Subsequently, I shifted the car to Karnataka in Feb 2016 and registered in Karnataka, paying a whopping road tax amount of Rs 84,107?-. RTO refused to give details of calculations but I had no option but to pay.Now the car is registered in Bengaluru (Karnataka) in my name.

I now intend to shift the car back to Kolkata (WB) in Jan 2020. I will continue to be the owner when I will re-register in Kolkata.

Will I be eligible to claim refund of road tax from RTO Bengaluru? Since I have used the car in Bengaluru for only 4 years, will I be eligible to get refund of road tax 84,107 x(15-4)/15 = 61,678/-? Nobody in RTO is willing to confirm or clarify on refund eligibility or refund amount. I am unable to decide if I should shift the vehicle or sell the car here in bengaluru.

Please advise.

Hi, I was given a company car in Feb 2011 in West Bengal, which was purchased by a finanicial leasing company at a price of Rs 6,35,000 plus VAT, totalling Rs 7,25,000, and hypothecated to it. In Jan 2016, company paid remaining amounts to leasing company and the car was transferred to the company. The company, in turn, transferred the car to me (individual owner) at a residual price of Rs 1,55,000/-. I had to pay road tax to WB (Kolkata) for registering the car in my name in Feb 2016. The car is in my name now. Subsequently, I shifted the car to Karnataka in Feb 2016 and registered in Karnataka, paying a whopping road tax amount of Rs 84,107?-. RTO refused to give details of calculations but I had no option but to pay.Now the car is registered in Bengaluru (Karnataka) in my name. I now intend to shift the car back to Kolkata (WB) in Jan 2020. I will continue to be the owner when I will re-register in Kolkata. Will I be eligible to claim refund of road tax from RTO Bengaluru? Since I have used the car in Bengaluru for only 4 years, will I be eligible to get refund of road tax 84,107 x(15-4)/15 = 61,678/-? Nobody in RTO is willing to confirm or clarify on refund eligibility or refund amount. I am unable to decide if I should shift the vehicle or sell the car here in bengaluru. Please advise.
Guest - Ashish on Monday, 28 December 2020 00:56

Dude (Himadri) that's so filmy. Gopal bro just 2 words - 'Sell it'. Apparently RTO has never heard of the term 'refund'. They will think u are an alien ? if u ask for it. Much have changed in RTO'S as compared to earlier times but still a lot needs to be improved especially if u have somewhat tricky cases like yours. Trust me I have been through it.

Dude (Himadri) that's so filmy. Gopal bro just 2 words - 'Sell it'. Apparently RTO has never heard of the term 'refund'. They will think u are an alien ? if u ask for it. Much have changed in RTO'S as compared to earlier times but still a lot needs to be improved especially if u have somewhat tricky cases like yours. Trust me I have been through it.
Guest - Himadri on Saturday, 17 October 2020 19:44

This decision is depend on how much you love your car....

This decision is depend on how much you love your car....
Guest - Yogesh Kumar on Thursday, 05 December 2019 11:00

Why States charge Road tax again in case of inter state transfer of vehicle? They should claim the Road tax refund from previous state themselves & can charge customers only some administative expenses.

Why States charge Road tax again in case of inter state transfer of vehicle? They should claim the Road tax refund from previous state themselves & can charge customers only some administative expenses.
Guest - Himadri on Saturday, 17 October 2020 19:46

Very true. great Idea. this process should be Online. This RTO department is full of corruption.

Very true. great Idea. this process should be Online. This RTO department is full of corruption.
Guest - Sunil Kumar on Monday, 19 August 2019 21:46

I purchased a ertiga car in delhi while my posting in Delhi and I am second onwer. Now, I am posted in Rajasthan and I am also from Rajasthan. Sir, I want to know how many road tax to be paid by me for transfer of RC from Delhi to Rajasthan and RC already transferred to me on my Delhi address.

I purchased a ertiga car in delhi while my posting in Delhi and I am second onwer. Now, I am posted in Rajasthan and I am also from Rajasthan. Sir, I want to know how many road tax to be paid by me for transfer of RC from Delhi to Rajasthan and RC already transferred to me on my Delhi address.
Guest - Tissy Joseph on Saturday, 21 December 2019 02:10

It is reduced depending on the age of the car. This is how it is calculated. The tax for a new car is 10%. When you register your car in a new state, this is reduced by 0.15% every year. So, if your car is 5 years old, it will be about 7 to 8% of the original cost. You may also note that when you apply for a new registation in Rajasthan RTO, you will have to get an NOC from your present Delhi RTO in Form 28 and you will also have to produce a copy of the original invoice of the car. If you know where this car was originally registered, you can contact them and they will give you.

I had purchased a few months old car in Kerala 6 years back and last month I registered it in Tamil Nadu to where I have moved. While trying to register here, they asked for invoice. I contacted Ford in Kerala and they emailed me a copy of the 2013 invoice in few minutes.

I also like to warn you that it is a cumbersome job to get registered in another state. These things are still so terrible in India

It is reduced depending on the age of the car. This is how it is calculated. The tax for a new car is 10%. When you register your car in a new state, this is reduced by 0.15% every year. So, if your car is 5 years old, it will be about 7 to 8% of the original cost. You may also note that when you apply for a new registation in Rajasthan RTO, you will have to get an NOC from your present Delhi RTO in Form 28 and you will also have to produce a copy of the original invoice of the car. If you know where this car was originally registered, you can contact them and they will give you. I had purchased a few months old car in Kerala 6 years back and last month I registered it in Tamil Nadu to where I have moved. While trying to register here, they asked for invoice. I contacted Ford in Kerala and they emailed me a copy of the 2013 invoice in few minutes. I also like to warn you that it is a cumbersome job to get registered in another state. These things are still so terrible in India
Guest - Atul joshi on Sunday, 28 July 2019 15:11

Sir I buy used car pune parsing
I'm second owner
Can the first owner of the car apply to refund road tax

Sir I buy used car pune parsing I'm second owner Can the first owner of the car apply to refund road tax
Guest - Deepak on Saturday, 27 July 2019 23:27

Hi,
My old registration is from KARNATAKA and new registration is MAHARASHTRA.
Do I need to apply for RTO tax refund in MAHARASHTRA ?

Hi, My old registration is from KARNATAKA and new registration is MAHARASHTRA. Do I need to apply for RTO tax refund in MAHARASHTRA ?
Guest
Sunday, 28 November 2021

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