RTO Tax Refund

If you have paid more tax while transferring your vehicle to the new state, then in that case you can claim for a tax refund from the RTO. But before you claim for the refund, the vehicle re-registration process should be completed in the new state. Before filing a claim refund, firstly, you should understand on what grounds you can request for a road tax refund from your RTO.

  • When the owner has returned the taxation card along with the registration certificate.
  • When the vehicle's registration certificate was denied due to some reason.

What is the process of a road tax refund?

Any individual can claim for a tax refund offline only after registering his/her vehicle in the new state along with the supporting documents which are mentioned below

What are the documents required for a road tax refund?

The following are the key documents required while claiming for road tax refund-

  • The imprint of car chassis
  • Original or notarized copy of new smart card as well as an old smart card
  • Copy of new insurance and pollution under control
  • Photocopy of state transfer NOC
  • Receipt of road tax as originally paid in the first state where the vehicle was registered
  • Photocopy of receipt of new road tax showing status as paid
  • Proof or migration along with new ID proof
  • RTO Form 16 and RTO Form DT as an application for tax refund
  • Request letter for refund along with bank account number/address on which cheque needs to be sent
  • New registration authority needs to send CRTI Intimation that vehicle is registered in the new state (this is applicable only in Karnataka.

Applicants will have to send a xerox of all the above-mentioned documents to the original RTO office where the vehicle was initially registered.

How is the road tax refund amount calculated?

he road tax refund amount depends on the duration for which the vehicle owner has been paying the road tax. Time period means the number of years that have passed since the vehicle had been first registered in the state to the time a refund request was raised. For example, the owner of the vehicle has been paying the road tax for 5 years, he or she will be liable to 66 percent of the total amount paid as tax. Smart card fees and State MCD parking is exempted from the tax refund claim.

Is there any time limit for applying for a tax refund?

Yes, but each state has a different timeline for that. For example, in Maharashtra- RTO can decline the application for the tax refund if it is submitted after 6 months of obtaining the State Transfer NOC. So, make sure you check the time limit before applying for a tax refund in your state.

Is tax refund applicable in all states?

Yes, whether you belong from any tier cities or metro cities such as Mumbai, Delhi, Hyderabad, or Bangalore. You can easily apply for an RTO tax refund.

Can a person claim for RTO road tax refund online?

No, the road tax refund claim can be only be made by submitting the relevant documents at the RTO office in person.