Filling Karnataka Road Tax can be a lengthy process. There are a number of things that you need to consider. Read this blog to know more!
According to Section 213 of the Motor Vehicles Act, 1988, a Karnataka Road Tax is needed to be paid by the owner of every motor vehicle in the state of Karnataka. It is the responsibility of the government of Karnataka to provide the framework for the tax system. Only people exempt from paying road tax in whole or part can operate a vehicle by the Motor Vehicles Taxation Act. Before you go online to pay for the road tax in Karnataka, you must first find out how the process works and how much you will be required to pay.
Karnataka Motor Vehicles Taxation Act
The Karnataka Motor Vehicles Taxation Act establishes the road taxes for two- and four-wheel vehicles registered in Bangalore. Since the act’s implementation in 1957, various improvements have been made.
Road Tax Calculation in Karnataka
In Karnataka, automobile taxes are computed based on the vehicle’s age, price, original registration date, seating capacity, and engine size. In addition, when computing taxes, the use of the cars and the location of their manufacture are taken into account.
What is Karnataka Road Tax?
- With the passage of the Karnataka Motor Vehicles Taxation Act in 1957, Karnataka became the first state in India to use a contemporary form of road tax. This Act is still in effect as of 2014, even though it has undergone several revisions.
- Every motorist in Karnataka and the rest of India must pay a specific type of tax called “road tax.” The owners of motor vehicles that are registered within the borders of a state are the ones who are responsible for paying this tax to the government of that state.
- The government uses the money collected from these fees to construct and maintain roads, making it simpler and safer for individuals to travel throughout the country. The funds collected from these tolls are put to good use toward the ongoing upkeep of secure routes and protecting the people who travel on them.
- Before registering a new or used car with the RTO in Karnataka, you must settle any outstanding road tax charges.
How to Determine the Amount of Karnataka Road Tax?
The value of the vehicle and its age are the two primary components considered during the RTO tax calculation in Karnataka. Many different things go into this, one of which is the state in India where your vehicle is registered.
It would help if you considered the following.
- Wheel count
- The amount of power that the motor puts out
- Seat Count
- The price of the automobile
- Purpose of the vehicle
- The age of the vehicle
- What kind of gasoline does it use
Drivers in Karnataka are required to have a comprehensive awareness of the state’s road tax system.
Tax for Two-Wheelers in Karnataka
Right off the bat, it is essential to realize that the road tax burden for purchasers of new and secondhand bikes is distinct from one another.
New Vehicles
In India, individuals who purchase brand-new automobiles would be required to pay road taxes equal to 10% of the vehicle’s purchase price, with a cap of Rs.50000. If a motorcycle costs 40,000 rupees, the tax that would be applied to it would be 4,000 rupees in this scenario.
In Karnataka, a road tax of 12% of the price of a new vehicle that is more than Rs.50000 is required.
Old Vehicles
At least five years of age is required as a prerequisite. The vehicle’s exact age is considered while determining the appropriate tax rate. It is possible to use between 75% and 93% of the spectrum.
Between the Ages of 5 and 10, your actual age is a vital factor to consider when calculating the quantity of responsibility you possess. In situations like these, the applicable tax rate is often somewhere in the range of 49% to 69%.
Regarding vehicles older than ten years, road taxes can vary anywhere from 25% to 45% of the total cost, but when it comes to more than 15 years, road taxes can range anywhere from 50% to 100% of the total cost.
Tax for Four-Wheelers in Karnataka
Taxes on four-wheel vehicles are required to consider the car’s age and the price at which it was purchased
About Brand-New Automobiles
- Prices for brand new vehicles start at 5 million rupees, and the purchaser is responsible for paying taxes equivalent to 13 percent of the vehicle’s value.
- 14% of the price of autos with a price tag between Rs. 5 million and Rs. 10 million is what the government would collect as tax revenue.
- 17% of the purchase price of a brand-new car, or the price of any vehicle that costs more than Rs.10 million but less than Rs.20 million, must be paid as road tax by the laws of the state of Karnataka.
- Operating expenses and registration fees for automobiles with a price tag of more than Rs. 20 million add up to 18% of the vehicle’s initial purchase price.
About Old Vehicles
- At least five years of age is required as a prerequisite. On all vehicles that fall within this category, the tax rate ranges from 75% to 93%.
- Taxes range from 49 percent to 69 percent of the vehicle’s value for automobiles between 5 and 10 years old.
- Tax rates would range from 25% to 45% for drivers who had automobiles between 10 and 15 years old.
How Does Karnataka Determine the Amount of Road Tax to Be Paid by Commercial Vehicles
Karnataka is unlike many other states because it does not impose different road charges on commercial and private vehicles. When assessing how much you should contribute to the upkeep of a specific road in the state, the state government does not care about why you are driving on that road. All motor vehicle owners must pay the fees above, regardless of whether or not the cars are utilized for business purposes.
Karnataka’s Penalty Interest Rate for Overdue Road Tax Payments
It is possible to go a whole year without paying road tax on your automobile or motorcycle in the state of Karnataka. That obligation may be paid off at any moment during the year. On the other hand, those who choose to disobey will be forced to pay a steep penalty for their disobedience. The daily penalty for not paying these fees is an increase in the total amount due.
How to Make an Online Payment for Karnataka Road Tax
The state government of Karnataka now requires drivers of cars and motorcycles to pay a fee every time they use the road. Those who drive without paying their fair share of road costs might anticipate severe penalties. Your options for remitting your road tax have expanded to include the web and the mail. Here are the steps you need to do to pay your road tax online in Karnataka:
- Go to Vahan Portal
- Before proceeding, you must first input your registration number.
- To go to the Taxes submenu, you need to choose Finances.
- To have an OTP delivered to your phone, enter your number
- The “Show Details” button will become active once you input the one-time password (OTP) you received on your mobile device.
- Verify everything from the names and numbers of everyone involved to the financial details.
- Choose the tax method.
- Pick an online payment method
- Taxes have been paid, and a receipt has been produced for your records.
How Can You Download the Tax Receipt
Karnataka motorists can check the status of their road tax refunds by logging into the portal and clicking the Status link. Choose “Reprint Receipt/Form” from the drop-down menu. To acquire a duplicate receipt, select Reprint Receipt and fill out the form again.
Conclusion
This is all about the Karnataka tax on roads. In case you face a problem in understanding, you can contact Vakilsearch. Their professionals will guide you.
FAQ’s
What are the penalties for late payment of vehicle tax in Karnataka?
The penalty for late payment of vehicle tax in Karnataka is around 4% per month on the outstanding amount.
How can I check the status of my road tax payment online in Karnataka?
The status of road tax payments can be checked online through the Parivahan portal.
Is there a difference in road tax for petrol and diesel vehicles in Karnataka?
No, there is no difference in road tax for petrol and diesel vehicles in Karnataka.
How to apply for a road tax refund in Karnataka?
To apply for a road tax refund in Karnataka, the vehicle owner needs to submit an application to the concerned Regional Transport Office (RTO) along with the required documents.
Are there any exemptions or rebates on vehicle tax for differently-abled individuals in Karnataka?
Yes, differently-abled individuals are eligible for certain taxes in Karnataka subject to the prevailing policies and regulations
How do I transfer my vehicle from another state to Karnataka and how is the tax calculated?
To transfer a vehicle from another state to Karnataka, the vehicle owner needs to submit an application to the concerned RTO along with the required documents. The tax is calculated based on the age and value of the vehicle.
What documents are needed to pay road tax in Karnataka?
The documents needed to pay road tax in Karnataka include the registration certificate, insurance certificate, pollution under control certificate and proof of address.
How often do road tax rates change in Karnataka?
Road tax rates in Karnataka are subject to change based on the state government's policies and regulations.
If I sell my vehicle within Karnataka, do I need to pay any transfer tax or fees?
Yes, a transfer fee needs to be paid to the RTO for transferring the ownership of the vehicle.
How is road tax calculated for luxury or imported vehicles in Karnataka?
Road tax for luxury or imported vehicles in Karnataka is calculated based on the value of the vehicle.
Are electric vehicles subject to different road tax rates in Karnataka?
Yes, electric vehicles are subject to a lower road tax rate of 4% in Karnataka.
