Relocating to a new city along with family and vehicle is a tedious task. The process of vehicle registration is a complex procedure in itself and when an individual is burdened with the exercise of transferring to a new state, the entire registration process has to be essentially redone.
While there is no way to avoid this troublesome task, one can claim the road tax (a tax to be paid periodically on motor vehicles for using the public roads) paid to the previous state’s regional transport office (RTO). Road tax is imposed in India by the central and state government and also by the local bodies.
Generally, keeping the complexity and the time exhaustive processes of the RTO in mind people are discouraged to reclaim their road tax. There are many instances where people have moved from one state to another without reclaiming the tax paid to the old RTO and are subjected to double taxation. In fact, many are not even aware that there is a process via which previous road tax paid can be reclaimed.
So if you are amongst the group of vehicle-owners who have faced a similar dilemma, here are the details you should know to reclaim your old road tax after registering your vehicle in a new state:
An individual can claim the lifetime road tax paid to previous state’s RTO only after paying lifetime tax and registering the vehicle with the new state’s transport department. The state entry tax also needs to be paid in addition to the lifetime tax.
Only after registering your vehicle with the new RTO in a new state, you are eligible to file a request to reclaim lifetime road tax paid to previous state.
Documents required for tax refund:
- Notarized copy of new smart card and original or notarized copy of old smart card (as available)
- Imprint of car chassis
- NOC of state transfer (photocopy)
- Copy of new insurance and PUC
- Photocopy of receipt of new road tax paid
- Receipt of road tax paid previously in the first state where vehicle was registered
- RTO form DT, RTO Form 16 as application for tax refund
- New address proof as evidence of migration along with ID proof
- Request letter for refund along with bank account number/address on which cheque needs to be sent