Know all about VAHAN/Parivahan Tax & RTO Charges in Bangalore

Buying a two-wheeler or four-wheeler is a joyous event, but it also involves significant work. Apart from acquiring registration, license plate and PUC, one would also need to service a specialised tax, known as road tax. One can either pay the amount through a single transaction during vehicle registration or opt for road tax payment throughout the car/bike’s lifespan.

Road taxes in India are levied by state governments, and not by the Union. Thus, each state follows its own guidelines and rates for road taxation. Bangalore vehicle owners, for instance, will need to pay Bangalore road tax as per the requirements of the Karnataka state government.

Are you buying a bike or car soon? Knowing these factors regarding RTO tax Bangalore should help you then!

Bangalore follows the Karnataka Motor Vehicles Taxation Act of 1957. Over the years, this Act has undergone several key changes and amendments. Vehicle owners in Bangalore would need to visit their local regional transport office or RTO at the time of acquiring the car/bike’s registration and pay the taxes due. 

The primary purpose for levying road tax is to accumulate a significant pool of funds, which the state authorities can utilise to upkeep road condition. This money also goes a long way to ensure security on the roads of Bangalore, which will allow for hassle-free travel.

The state government is responsible for the collection of Bangalore road tax. Due to the lack of a unified road tax authority, the exact rates and method of taxation can differ from one state to the other. Thus, if you have recently moved to Bangalore from another state, you must check the taxation in this city as opposed to your previous residential state.

Before learning about Bangalore road tax rates, you must assess how this tax is calculated on a particular vehicle. This differs from one state to another.

Usually, the following factors are used to determine taxes on a particular vehicle:

• Type of fuel used
• Number of wheels
• Seating capacity
• Vehicle age
• Cost of a car/bike
• Cubic capacity of the engine
• Usage purpose

RTO charges in Bangalore for two-wheelers and four-wheelers are calculated based on their cost and age. Electric vehicles are taxed under a different slot as well.

When it comes to age-based calculations, the state government levies higher taxes on newer cars/bikes and vice versa. Here is a distinct division for two-wheelers and four-wheelers concerning road tax payment.

If you are a proud owner of a bike, scooty or scooter in Bangalore, you would need to service road taxes as per the following categories:

• New Two-wheelers costing Rs.50000 or Less - If your new bike/scooter is priced at Rs.50000 or lower, you would need to bear a tax of around 10% its cost. For example, consider that you buy a new bike, bearing a price tag of Rs.45000. In such an event, your road tax liability in Bangalore would be Rs.4500.
• New Vehicles priced over Rs.50000 - If your two-wheeler falls under this category, be ready to spend 12% and 18% of the bike’s price as the road tax on it.
• Two-wheelers not older than 5 Years - If the concerned two-wheeler is a used vehicle, its road tax liability would be determined by its age and not its cost. For instance, Bangalore two-wheelers aged less than 5 years draw a road tax rate, ranging between 75% and 93% of its cost. Two-wheelers, not older than 2 years, will lead to 93% of road taxes.
• Two-wheelers Aged between 5 and 10 Years - Here, the tax range varies from 49% to 69% of the original cost. Needless to say, 49% is the applicable taxes on bikes aged between 5 and 6 years, while the highest rate is for two-wheelers aged between 9-10 years. 
• Two-wheelers Aged between 10 and 15 Years - Bangalore road tax on a two-wheeler, in this category, ranges between 29% and 45%. Again, older cars draw lower taxes and vice versa.
• Two-wheelers older than 15 Years - If your two-wheeler is older than 15 years, you would owe 25% of the vehicle’s cost as road taxes.

Car owners in Bangalore should know the unique road tax rates applicable. Keep in mind that your liabilities would change based on whether you own a new car or a used one. Here are the categories to keep in mind:

• New Cars Sporting a Price Tag lower than Rs.5 Lakh - If your new car costs Rs.4 lakh, you would have to pay 13% of this amount as road taxes. Therefore, the resulting road tax liability would be Rs.52000, in that case.
• New Cars Costing between Rs.5 Lakh and Rs.10 Lakh - Bangalore car owners who fall under this category would need to pay 14% of the car’s price as taxes. 
• New Cars Costing between Rs.10 Lakh and Rs.20 Lakh - 17% of the vehicle’s cost needs to be borne as road taxes if your car falls within this price point.
• New Cars Costing more Than Rs.20 Lakh - If you opt for a premium range vehicle in Bangalore, whose price tag is over Rs.20 lakh, be ready to shell out 18% of its cost as road tax.
• Used Cars not Older than 5 Years - You would need to pay between 75% and 93% of a used car’s cost as road taxes. Thus, picking a used car in Bangalore may cost you dearly.
• Used Cars Aged between 5 Years and 10 Years - Vehicle owners in this category would need to service taxes, ranging between 49% and 69% of the car’s cost. 
• Used Cars Aged between 10 Years and 15 Years - Bangalore road tax ranges from 25% to 45% for used cars, which are aged between 10 years and 15 years.

Road tax rules remain the same for two-wheelers and four-wheelers, regardless of their usage or utility. Thus, commercial vehicle owners will need to service road taxes at the same rates when compared to cars/bikes used for non-commercial purposes.

Individuals can remain in Bangalore for one month without servicing the applicable road taxes. Also, an owner can drive for  upto 12 months without clearing such liabilities. However, if you fail to pay the dues at this time, be ready to pay additional charges as penalty.

The simplest way to clear your road tax dues in Bangalore is to pay the same while registering your car or bike at the local RTO. Individuals can choose to bear this payment through cash or demand draft. Alternatively, owners can also log on to the Parivahan portal, which is a government website, to pay such taxes. 

• Step 1: Visit the official Parivahan portal online.
• Step 2: Login using your car’s registration number.
• Step 3: Select the ‘Online Services’ option and proceed to select ‘Vehicle Related Services.’
• Step 4: Next, choose Karnataka from the available menu. This should transport you to the state road tax payment portal.
• Step 5: Enter the vehicle’s registration number and other relevant details.
• Step 6: Utilise debit cards or internet banking to clear tax liabilities. This is one of the benefits of choosing an online tax payment.