RULES AND REGULATIONS TO ROAD TAX IN DELHI

WHO LEVIES ROAD TAX?
Road Tax is levied on all two-wheeler, four-wheeler, and
other types of vehicles used for both private and
commercial purposes. It is imposed by
 The State Government who levies yearly or lifetime
motor vehicles tax, passenger and goods tax, state vat,
and toll tax.
 The Central Government which levies customs duty,
central excise, central sales tax, GST and other
additional cess based on the model and type of the
vehicle.

WHY IS ROAD TAX A STATE LEVEL
TAX?
Other than national highways which are
constructed and maintained by the Central
Government, about 80% of the roads in all
the states of India are constructed by the
respective state government. Since the cost
of construction of these roads is borne by
each state, the road tax is essentially
imposed by the respective state government.

WHO HAS TO PAY THE ROAD TAX?
Individuals purchasing a vehicle pay the road tax
which is based on the ex-showroom price of the
vehicle. The calculation of road tax depends on
these following things:
 Seating capacity of the vehicle
 The engine capacity of the vehicle
 Age of the vehicle
 Weight of the Vehicle

HOW TO PAY THE ROAD TAX?
Offline Method
The showroom or the automobile dealer is the one who makes the initial
payment of road tax for a vehicle. Once the validity period of the first
payment is over, the vehicle owner has to visit an RTO near his/her
location, fill up the road tax form with personal details, and deposit the tax
amount by cash or demand draft.
The common documents that one needs to produce to pay road tax are
registration papers and insurance papers of the vehicle, address proof,
and purchase invoice.
Online method
Individuals can also opt to pay the road tax online by visiting the
Transport Department website of the state where the vehicle was
purchased. To pay the road tax online, a vehicle owner has to enter the
Vehicle Registration Number and then submit it. In the next step, he/she
has to select the mode of payment of tax and complete the payment
process.

RULES REGARDING PAYMENT OF TAX IN DELHI
The rules and regulations for road tax in Delhi are based on the Delhi
Motor Vehicle Taxation Act, 1962. Some of the important information
regarding the rules and regulation of Road tax for Delhi is given below.
 Tax Percentage
The tax percentage for private or non-commercial vehicles are as
follows:
 Life Time Tax Payment
The road tax for private or non-commercial vehicles is paid once, but
for commercial and passenger vehicles, the road tax can be paid on
monthly, yearly and half-yearly basis.

After the car owner has paid the tax that has been levied on his/her
vehicle under section 3 of the Taxation Act, the taxation authority
will issue a receipt which mentions the period for which the tax has
been paid (if any). The certificate of registration will also mention
the taxation period and whether or not the registration has been
granted in respect of the vehicle under the Motor Vehicle
Act. Note – The vehicle which is liable to tax under the Motor
Vehicle Act cannot be kept or used in Delhi unless the owner has a
valid taxation card displayed on the vehicle
TAXATION CARD