Situations That Warrant Road Tax Cancellation

• Road tax cancellation usually arises when a vehicle is deregistered or sold to another state.
  
• It is applicable if a vehicle is scrapped, permanently exported, or no longer in use.
  
• Cancellation is also allowed when a vehicle owner relocates and pays road tax in a new state.
  
• Refund claims are tied to cancellation when tax has been paid in advance.
  
• Cancellation may also occur due to incorrect tax assessment or duplicate payment.
  

Preconditions for Initiating Cancellation

• The vehicle must be de-registered formally with the Regional Transport Office.
  
• All outstanding fines, challans, or dues must be cleared before cancellation.
  
• A valid reason such as scrappage, transfer of ownership, or interstate migration must be provided.
  
• The vehicle should not be under any loan hypothecation unless cleared by the financer.
  
• Supporting documents must be prepared before approaching the transport office.
  

Documents Required for Cancellation

• Original RC (Registration Certificate) of the vehicle.
  
• Valid Pollution Under Control (PUC) certificate and insurance papers.
  
• Address proof and ID proof of the registered owner.
  
• NOC (No Objection Certificate) from the RTO or financer if the vehicle is under loan.
  
• Copy of new state’s registration proof if applicable and road tax payment receipt.
  

Application Submission Procedure

• Submit a written application for road tax cancellation or refund at the original RTO.
  
• Attach all required documents and a signed declaration with the reason for cancellation.
  
• RTO will inspect the submitted paperwork and initiate verification of vehicle status.
  
• If applicable, an inspection of the vehicle or chassis may be conducted.
  
• Upon approval, a Tax Cancellation Order or Refund Order will be issued.
  

Refund Process and Timelines

• Refund, if applicable, is processed based on unused road tax tenure.
  
• Refund claim is generally calculated pro-rata for the balance period of tax validity.
  
• State-specific timelines may vary from 30 to 90 days after document submission.
  
• The amount is transferred to the registered owner’s bank account upon approval.
  
• Some states may charge a processing fee or retain a nominal deduction from the refund.