Karnataka is one of the renowned states with 30 districts and best road connectivity. The state government has imposed a road tax on every vehicle plying on the roads of Karnataka. The road tax is levied under the Karnataka Motor Vehicles Taxation Act, which was first introduced in 1957. Under this act, tax is considered for all the vehicles, whether it is sold or newly registered.
The road tax in Karnataka is charged by considering several factors such as the price of the vehicle, manufacture, seating capacity, engine capacity, etc. The other factors considered are - the purpose of the vehicle, whether it is personal or commercial.
The road tax for two-wheelers is dependent on the cost of the vehicle and the age.
The tax rates for two-wheelers are as follows:
|Vehicle Category||Tax Rate|
|New two-wheeler pricing Rs. 50,000||10% of the cost of the vehicle|
|New two-wheeler pricing between Rs. 50,000 to 1,00,000||12% of the cost of the vehicle|
|New two-wheeler pricing above Rs. 1,00,000||18% of the cost of the vehicle|
|New electric two-wheeler||4% of the cost of the vehicle|
|Vehicle that is not more than 2 years old||93 % of the cost of the vehicle|
|Vehicle between 3 to 4 years old||81% of the cost of the vehicle|
|Vehicle between 4 to 5 years old||75% of the cost of the vehicle|
|Vehicle between 5 to 6 years old||69% of the cost of the vehicle|
|Vehicle between 6 to 7 years old||64% of the cost of the vehicle|
|Vehicle between 7 to 8 years old||59% of the cost of the vehicle|
|Vehicle between 8 to 9 years old||54% of the cost of the vehicle|
|Vehicle between 9 to 10 years old||49% of the cost of the vehicle|
|Vehicle between 10 to 11 years old||45% of the cost of the vehicle|
|Vehicle between 11 to 12 years old||41% of the cost of the vehicle|
|Vehicle between 12 to 13 years old||37% of the cost of the vehicle|
|Vehicle between 13 to 14 years old||33% of the cost of the vehicle|
|Vehicle between 14 to 15 years old||29% of the cost of the vehicle|
|Vehicle that is not more than 15 years||25% of the cost of the vehicle|
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The road tax levied on four-wheelers rely on the use and the classification of the vehicle.
The tax rates are as follows:
|Vehicle Category||Tax Rate|
|New vehicle cost less than Rs. 5 lakh||13% of the cost of the vehicle|
|New vehicle cost between Rs. 5 lakh to 10 lakh||14% of the cost of the vehicle|
|New vehicle cost between Rs. 10 lakh to 20 lakh||17% of the cost of the vehicle|
|New vehicle that cost more than Rs. 20 lakh||18% of the cost of the vehicle|
|Electric vehicles||4% of the cost of the vehicle|
|Vehicles that are below 5 years old||75% to 93% as per clause A|
|Vehicles that are 5 years to 10 years old||49% to 69% as per clause A|
|Vehicles that are up to 10 to 15 years old||45% to 25% as per clause A|
Apart from these Taxes, there is a separate tax rate for classic and vintage cars registered in Karnataka. A vehicle owner should pay the lifetime tax only once.
If you have imported a vehicle, then the cost of the vehicle, custom duty and any other cost incurred in bringing the vehicle will be considered while calculating Vahan tax.
Currently, if someone is operating a vehicle in Karnataka, which has been registered in other states, then lifetime tax need not be paid unless the vehicle is used for more than 1 year.
The tax can be paid at the time of registering the vehicle. Visit nearest Regional Transport Offices (RTO) in the state, fill the form and provide your registration documents. Once the payment is done, you will receive a receipt for the payment. Keep the receipt safe for future references.
A: The Karnataka road tax was initially implemented in 1957. However, the Act has undergone numerous changes. Presently it covers all vehicles that have been registered in any of the thirty districts of Karnataka. The road tax has been levied under the Karnataka Motor Vehicles Taxation Act.
A: Like other states in India in Karnataka, the road tax is calculated based on the age, weight, seating capacity, cost of the vehicle, and the vehicle's price during registration. However, in the tax for two-wheelers is calculated separately and is lower compared to four-wheelers.
A: The tax on two-wheelers is calculated based on the cost and age of the vehicle. For example, for a new two-wheeler that is priced below Rs. 50,000 the tax is levied at 10% of the cost of the vehicle.
A: Yes, while calculating road tax in Karnataka, the ex-showroom price of the vehicle is considered. You will have to check the vehicle's on-road price to understand the amount you have to pay as road tax in this state.
A: Anyone who owns a registered vehicle in any one of the twenty districts of Karnataka has to pay road tax to the State Government. However, if you have bought a vehicle from outside Karnataka, but use it to ply it on the state's roads, you need to register the vehicle in the state. Once you have registered the vehicle, you will need to pay road tax.
A: When you calculate the road tax for four-wheelers, you will have to ensure that the vehicle is used for domestic purposes and does not take up floor space of more than five square meters. While calculating the road tax for four-wheelers, you will also have to consider the vehicle's cost and age.
A: Yes, the taxation guidelines for classic and vintage cars different in Karnataka. You have to pay a lifetime road tax only once, which has been fixed at Rs for a classic car. 1000. For a vintage car to you will have to pay a lifetime road tax, which has been fixed at Rs.500.
A: In the case of imported vehicles, the vehicles' price is usually higher, and hence the tax amounts will be higher. Along with that, you will have to Factor in the customs duty and the registration process. Once the registration is completed, you will understand the tax value of a registered vehicle.
A: You can pay road tax in Karnataka by visiting the Regional Transport office (RTO) and making the payment by cash or Demand Draft (DD). You will also need to fill out a form to give details about the vehicle and provide relevant documents such as registration documents, sales invoices, and other such documents. Once you have calculated the tax amount and the taxation period, you can make the payment.
A: Yes, it is essential that you safely store the receipt for the road tax payment for future references.
A: When a car is purchased in Delhi and has to be registered again in Karnataka, you will have to pay a lifetime road tax to the Karnataka Government. The taxation rate is calculated based on the age of the vehicle and the price of the vehicle. For cars aged between 5 to 10 years, the tax rate is calculated between
49% and 69% as per Clause A. For a 5 year-old vehicle that is priced at Rs. 10,00,000 let us consider that the tax rate is 49% as per Clause A. According to this, the tax amount payable is Rs. 125,874.00. However, there might be specific changes in the amount payable; for instance, if you are using an imported vehicle, the taxation will be different.
Similarly, for a vehicle that does not use fossil fuel, the rate of taxation will be different. Hence, calculating the road tax will not depend entirely on the vehicle's age and price; it will also depend on the engine, seating capacity, usage, and other similar factors. Moreover, as you will be paying the Karnataka road tax only once in a lifetime, you must get the tax amount evaluated adequately before making the payment.
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