Every vehicle owner in India is required to pay road tax, which is a mandatory contribution collected by the state governments to meet the cost of maintaining and improving roads, highways, and transport facilities. In the state of Jharkhand, this tax is a major source of revenue to be used for better road facilities, better connectivity for commuters and a safer and smoother travel experience.
For those who own vehicles in the state, it is important to understand clearly how road tax is calculated, what the rates are, and what modes of payment are available. This helps to ensure that they are not found in violation of the law and thus have a chance to avoid additional fines.
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What is Road Tax and Why is it Important?
Road tax, also known as motor vehicle tax, VAHAN tax, or Parivahan tax, is an obligatory payment for all vehicle owners who use the public roads. It is typically collected at the time of vehicle registration, and the payment can be either one-time or annual, depending on the state you reside in.
This tax allows for the maintenance of road networks and ensures safe transportation. The amount varies from state to state and is calculated based on factors such as the type of vehicle (private or commercial), engine capacity, seating capacity, fuel type (petrol/diesel/electric), age of the vehicle and cost.
Most state transport departments also provide options to pay online, thereby making the process quick and hassle-free.
Importance of Road Tax
Road tax plays a vital role in the support of the country’s road and transport system:
- Infrastructure Development: Revenue from road tax is used for building new roads, repairing highways, and maintaining bridges and flyovers.
- Safety & Facilities: It funds the installation of streetlights, traffic signals, road signs, and emergency services.
- Public Transport Support: Road tax revenue contributes to strengthening public transport systems, such as buses and metro projects.
- Legal Compliance: Payment of road tax is a legal obligation under the Motor Vehicles Act, 1988. Non-payment may result in fines, denial of fitness certificates, or even vehicle seizure.
- Sustainable Transport: By linking road tax slabs with fuel type and vehicle category, it also encourages the use of eco-friendly vehicles and helps regulate traffic.
Road Tax Rules in Jharkhand
In Jharkhand, road tax is governed by the Jharkhand Motor Vehicles Taxation Act, 2001 (with amendments, including the 2018 revision). It is a mandatory tax for all vehicles registered in the state, whether for private or commercial use.
Applicability of Road Tax in Jharkhand
The rates of road tax in Jharkhand depend on the vehicle type, cost, usage, and age.
Two-Wheelers
For new two-wheelers, the tax is charged at 6% of the cost of the vehicle (excluding GST) at the time of registration. Older vehicles attract reduced rates based on depreciation:
- 95% of the tax value for vehicles aged 1–2 years
- 90% for 2–3 years
- 50% beyond 10 years
Four-Wheelers (Private Use)
- 6% tax for vehicles costing below ₹15 lakh
- 15% tax for vehicles priced above ₹15 lakh (excluding GST)
Depreciation rules apply to older/used vehicles, which lowers the payable tax.
Commercial Vehicles
Taxis, buses, goods carriers, and transport vehicles are taxed based on weight, seating capacity, and type of usage. Payment is often periodic (quarterly/annually).
Electric/Battery Vehicles
Battery-operated vehicles enjoy a 25% rebate on total road tax liability, encouraging eco-friendly adoption.
Green Tax
A green tax is applicable on:
- Personal vehicles older than 15 years
- Transport vehicles older than 12 years
The tax is 10% of the payable road tax.
Factors Affecting Road Tax Rates
The following key factors determine road tax in Jharkhand:
- Type of Vehicle: Two-wheeler, car, taxi, bus, truck, etc.
- Purpose of Use: Private vehicles pay mostly a one-time tax, while commercial/transport vehicles pay periodically.
- Vehicle Cost: Higher-priced cars attract higher tax rates.
- Age of Vehicle: Tax reduces as the vehicle ages due to depreciation.
- Seating/Carrying Capacity: Important for buses and goods carriers.
- Fuel Type: EVs get rebates; petrol and diesel vehicles follow regular rates.
Lifetime Tax, Green Tax, and Exemptions
- Lifetime Tax: It is a one-time payment made during the registration of a vehicle. This tax is designed to cover the road usage for the entire lifespan of the vehicle, typically up to 15 years. The amount varies depending on the type of vehicle, its engine capacity, and whether it is used for private or commercial purposes.
- Green Tax: It is imposed to discourage the use of older, more polluting vehicles and promote environmental sustainability. In Jharkhand, this rule applies to non-transport vehicles over 15 years old and transport vehicles older than 8 years. The rate is usually a percentage of the road tax, ranging from 10% to 25%. However, certain vehicles used for agricultural purposes are exempt from this tax.
- Exemptions: Buyers of the first 10,000 EVs manufactured within the state enjoy a 100% exemption from road tax and registration fees. For vehicles numbered 10,001 to 15,000, a 75% exemption is provided, while those beyond 15,000 receive a 25% exemption during the policy period.
How to Calculate Road Tax in Jharkhand?
Jharkhand road tax is levied under the Jharkhand Motor Vehicles Taxation Act, 2001 and is determined by the type, cost, and age of the vehicle. Private vehicles generally pay a one-time lump sum tax at registration, while commercial vehicles are taxed based on weight, seating capacity, or usage, with payments often recurring.
Other factors such as engine capacity, depreciation, and fuel type (diesel, petrol, or electric) also impact the tax amount.
Parameters Used for Road Tax Calculation
The table below highlights the standard parameters used for calculating road tax in Jharkhand:
| Factors | Description |
| Type of the Vehicle | Two-wheelers, cars, SUVs, buses, trucks, and commercial vehicles |
| Engine Capacity | Measured in CC, higher CC vehicles usually attract higher tax rates |
| Weight/Seating Capacity | Commercial vehicles like buses and trucks are taxed based on weight or the number of seats |
| Usage | Personal vehicles pay a one-time tax; commercial vehicles pay a recurring tax |
| Fuel Type | Petrol/diesel follow standard rates; electric vehicles get a 25% rebate |
| Age of the Vehicle | Older vehicles pay less due to depreciation; slabs reduce from 95% to 50% beyond 10 years |
| Price/Value of Vehicle | Private vehicles are taxed at 6% (below ₹15 lakh) or 15% (above ₹15 lakh) of the cost |
| Green Tax | An additional 10% tax applies to vehicles older than 12–15 years |
Actual road tax in Jharkhand may vary based on the latest RTO updates, vehicle location, and specific vehicle configurations.
Sample Road Tax Calculation for Different Vehicles
Here are some example calculations for road tax in Jharkhand, using the known rate structure (6% for four-wheelers up to ₹15 lakh; higher if >₹15 lakh, etc.)
| Vehicle Type | Price | Tax Rate* | Road Tax Payable |
| Hatchback (Petrol) | ₹6,00,000 | 6% | ₹36,000 |
| SUV (Diesel) | ₹15,00,000 | 6% | ₹90,000 |
| Luxury Car (> ₹15 lakh) | ₹20,00,000 | 15% (since price exceeds ₹15 lakh) | ₹3,00,000 |
| Electric Car | ₹12,00,000 | 25% rebate on the standard tax from 6% to 4.5% | ₹54,000 |
Note: Rates are for first registration or vehicles up to 1 year old. For older vehicles, reduced percentages apply. Actual road tax in Jharkhand may vary based on the latest RTO updates, vehicle location, and specific vehicle configurations.
How to Pay Road Tax in Jharkhand?
Check out the various ways in which you can pay road tax in Jharkhand:
Online Payment Process
Payment of road tax in Jharkhand can be done easily through the state’s official online system. This makes the process quicker, transparent, and time-saving. Follow the steps below to pay your road tax online:
- Step 1: Visit the official Parivahan website, Parivahan Portal.
- Step 2: Select the “Vahan Service”.
- Step 3: Enter your vehicle registration number, select Jharkhand as the state, and choose the respective RTO.
- Step 4: Click on “Online Services” and then select “Pay Vehicle Tax”.
- Step 5: Enter the last five digits of your Chassis Number and click on “Validate Regn_no/Chasi_no.”
- Step 6: Generate an OTP, which will be sent to your registered mobile number. Enter the OTP and proceed.
- Step 7: Update your valid Insurance details and review the fee panel displayed.
- Step 8: Pay the road tax online using net banking, debit/credit card, or UPI.
- Step 9: Download the receipt generated after successful payment. The application will be forwarded to the RTO for further verification.
Offline Payment Process
If you prefer to pay road tax offline in Jharkhand, you can do so at the nearest Regional Transport Office (RTO) or an authorised collection centre. The steps are as follows:
- Step 1: Visit the nearest Jharkhand RTO or an authorised tax collection centre.
- Step 2: Carry all required documents, such as RC, ID proof, and insurance copy.
- Step 3: Collect and fill out the road tax payment form available at the RTO.
- Step 4: Submit the form along with the necessary documents.
- Step 5: Pay the applicable tax amount through cash, cheque, or demand draft.
- Step 6: Collect the payment receipt from the RTO, which serves as formal proof of road tax payment.
Documents Required for Road Tax Payment
When paying road tax in Jharkhand (online or offline), the following documents are required:
- Vehicle invoice copy
- Vehicle registration certificate (RC)
- Valid vehicle insurance copy
- No objection certificate (NOC) (for vehicles from another state)
- Form KMVT14 (for out-of-state vehicles)
- Proof of address (Aadhaar Card, passport, voter ID, ration card, rental agreement, or utility bill), valid insurance details, and review the fee panel displayed.
Penalties for Late Payment of Road Tax in Jharkhand
As per the Jharkhand Motor Vehicles Taxation Act, 2001, failure to pay road tax on time can result in penalties and fines. The penalty depends on the type of delay and whether it is a repeat offence.
Check out the table below for more details:
| Delay Situation/Period | Penalty/Fine |
| Delay in payment (general — within 30 days of due date) | 25% of the tax owing |
| Delay in payment (after 30 days but within 60 days) | 50% of the tax owing |
| Delay in payment (after 60 days but within 90 days) | 100% of the tax due |
| Delay in payment (beyond 90 days) | 200% of the tax owing |
Note: The exact penalty amount may vary depending on the Jharkhand RTO’s evaluation and the circumstances of the case.
Refunds and Road Tax Transfer Rules in Jharkhand
In Jharkhand, vehicle owners can apply for a refund or transfer of road tax under certain circumstances.
When is a Refund Applicable?
A road tax refund may be granted in the following situations:
- Sale of Vehicle – If the vehicle is sold before the tax validity period expires.
- Inter-State Transfer – When the vehicle is shifted and re-registered in another state.
- Vehicle Scrapping/Disposal – If the vehicle is scrapped before the 15-year validity of the registration certificate (RC) is completed.
Procedure for Applying for a Road Tax Refund/Transfer
If you are eligible for a road tax refund or transfer in Jharkhand, you need to complete the process through the regional transport office (RTO). The steps generally include:
- Approach the RTO: Visit the RTO where your vehicle is originally registered.
- Application Submission: Obtain the prescribed application form for refund or transfer and fill it out correctly.
- Provide Documents: Attach the necessary papers, such as the registration certificate (RC), original road tax receipt, no objection certificate (in case of interstate transfer), and proof of scrapping or relocation.
- Verification and Approval: The RTO will examine the application and documents. Once verified, the refund or transfer amount will be calculated depending on the remaining validity of the tax and the vehicle’s age.
Comparison: Road Tax in Jharkhand vs Other States
The table below compares road tax for a ₹10 lakh private car and the electric vehicle (EV) tax status in Jharkhand and nearby states:
Note: Tax rates are subject to change and may vary based on specific vehicle categories and other factors. It’s advisable to consult the respective state’s transport department for the most accurate and up-to-date information.
Road tax in Jharkhand plays a crucial role in funding the development and maintenance of the state’s road infrastructure. The tax rates depend on the type of vehicle, its ex-showroom cost, engine capacity, and purpose of use. Vehicle owners can pay road tax both online via the Parivahan portal or offline at the RTO, ensuring flexibility in payment methods.
By keeping track of the rules, owners can avoid penalties and also take advantage of refunds or exemptions when eligible. This ensures smoother compliance and hassle-free ownership of vehicles in Jharkhand.
FAQs About Road Tax in Jharkhand
Q. Are electric vehicles (EVs) eligible for road tax rebates?
Yes. Battery-powered electric vehicles in Jharkhand are eligible for a 25% rebate on the applicable road tax.
Q. Do I need to pay road tax again when transferring ownership within Jharkhand?
Yes. When a vehicle is sold or ownership is transferred within the state, the road tax is recalculated based on the vehicle’s age and its current market value.
Q. Is road tax refundable if I move my vehicle to another state?
Yes. A refund can be claimed, but it is subject to verification by the RTO and submission of the required documents, such as the RC, tax receipt, and NOC.
Q. How is road tax calculated in Jharkhand?
Road tax is calculated based on several factors: the type of vehicle (private or commercial), engine capacity, fuel type, seating or load capacity, and the ex-showroom price.
Q. What documents are required for road tax payment in Jharkhand?
The documents typically required include:
-Vehicle Registration Certificate (RC)
-Valid insurance copy
-Vehicle invoice
-Proof of address (Aadhaar, Passport, Voter ID, etc.)
-No Objection Certificate (NOC), if applicable
-Form KMVT14 (for vehicles coming from another state)
