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What is the road tax refund process in India?

Eligibility for Refund

  • Road tax refund is applicable when a vehicle is moved permanently to another state.
  • The refund is based on the unutilized period of the original road tax paid.
  • Only the registered owner can apply for the refund.
  • The new state’s road tax must be paid before initiating the refund.
  • The refund process applies only in states that permit such reimbursements.

Documents Required

  • Application for refund addressed to the original RTO.
  • Copy of original road tax payment receipt.
  • Copy of new state’s road tax receipt.
  • Original Registration Certificate and its cancellation proof.
  • No Objection Certificate (Form 28) and new Registration Certificate copy.

Steps in the Refund Process

  • Submit a refund application at the original state’s RTO.
  • Attach all required documents and identification proof.
  • The RTO verifies ownership, vehicle movement, and tax status.
  • The application is forwarded to the accounts department for refund processing.
  • Refund is usually credited to the applicant’s bank account.

Important Conditions

  • The refund is calculated on a pro-rata basis depending on the vehicle’s age.
  • Only lifetime tax components are refundable, not short-term or recurring taxes.
  • The original vehicle number must be deregistered before refund approval.
  • Some states have a time limit for submitting the refund application.
  • Refunds are not guaranteed and are subject to approval by the authority.

State-Wise Variation

  • Each state has its own refund rules, procedures, and timeline.
  • Some states require physical submission of documents, others allow online upload.
  • Refund rates and calculation formulas may differ between states.
  • Inconsistencies between state laws can delay the refund process.
  • It is advisable to check the specific policy of the concerned state transport department.

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