How to Claim Road Tax Refund?

After the vehicle has been registered in new state or the old registration has been cancelled, you can apply for the refund of road tax which was paid in old state where previously your vehicle was registered. Your application will be accepted for refund of road tax amount on Pro Rata basis. Presently, there is no online process for claiming tax refund hence the documents have to be submitted to the RTO personally.

It is to be noted that there is a Time Limit for applying road Tax Refund which usually varies from State to State. For example it is to be claimed within 6 months from transfer of vehicle or NOC of vehicle. After lapse of this time period, the RTO can decline to accept your road tax refund application. It is to be noted that only the original owner of the vehicle can apply for road tax refund and it cannot be claimed by the subsequent owners of the vehicle.

For claiming road tax refund, you need to send following documents to the original RTO Office where vehicle was previously registered:

  1. Request letter for refund along Bank Account Number or Address on which cheque needs to be sent
  2. RTO Form 16, RTO Form date as application for Tax Refund
  3. Vehicle Chassis Imprint
  4. New Insurance copy
  5. New PUC copy
  6. Copy of State Transfer NOC i.e. copy of Form 28
  7. Road Tax Receipt as originally paid in First State where vehicle was registered
  8. Copy of new road tax receipt
  9. New address proof as Proof of Migration
  10. Notarized copy of new smart card
  11. Original or notarized copy of old smart card
  12. Envelope having self-affixed stamp with equivalent value of registered post

Points to Note regarding Road Tax Refund

You can claim road tax refund only if you are the original owner of the vehicle. If the name of the owner is changed then no refund will be entertained. You need to claim for a refund within 6 months of the re-registration of your vehicle, however, this duration differs from state to state.

How to Calculate the Road Tax Refund Amount

Road tax is a tax which is to be paid periodically on motor vehicles for using the public roads. It is imposed in India by the central and state government and also by the local bodies.

Road tax refund amount depends on the duration for which the owner is paying the road tax. Duration is the number of years which have passed since the vehicle had been first registered till the time when the road tax refund is claimed.

You can understand this with the help of an example, suppose you are paying the road tax for a duration of 10 years, you will get a refund of 66% of the total amount paid as road tax to the previous RTO.