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- Key Highlights
- Road Tax in Telangana
- Why Road Tax is Significant?
- Factors Affecting the Calculation of Telangana State (TS) Road Tax
- TS Road Tax for Two-Wheelers
- TS Road Tax for Three-Wheelers
- TS Road Tax for Commercial Vehicle
- TS Road Tax for Vehicles Registered Outside Telangana
- How to Pay TS Road Tax?
- Process of Refund of Road Tax in Telangana
- Know the Road Tax Rules in Telangana to Avoid Penalties
Key Highlights
- The tax regime of Telangana is more lenient regarding car taxes, which gives personal automobile owners an advantage.
- A one-time tax payment is made for 15 years, after which a clearing up and fresh payment might be required.
- Road tax on vehicles registered in other states is to be deposited within a year, lest the owners of the vehicle have to face penalties.
- Telangana also provides 100% tax exemption on electric vehicles and electric bikes, promoting the adoption of EVs.
Road tax is an important component of government revenue used for road maintenance and construction. In Telangana, the road tax is charged by the Transport Department according to the Telangana Motor Vehicles Taxation Act enacted in 1963.Whether purchasing a new vehicle, transferring a vehicle from another state, or using a commercial vehicle in Telangana, all must be updated to avoid penalties or legal issues. Let's learn more about it.
Road Tax in Telangana
Telangana is the youngest state in India, with Hyderabad as its capital city. The state boasts of a pretty impressive road network of 27,000 km approximately, which aims to serve, among many other purposes. The road tax for the maintenance and development of its infrastructure is collected by the Telangana Transport Department from vehicle owners.According to the periodically active and implemented Telangana Motor Vehicle Taxation Act, vehicle owners should fill in the form with details of their vehicles and how they move around the state. The tax authorities impose the tax indicated on this form.
Overview of Factors Affecting Road Tax
Many variables will go into the determination of taxes, such as:
- Age of the vehicle
- Engine capacity
- Type (two-wheeler, four-wheeler, or commercial vehicle)
- Usage type (personal or business)
- Fuel type (petrol, diesel, electric, or CNG)
- Ex-showroom price (higher-priced cars have to pay higher tax)
Note : Since a one-time road tax is applied directly to the ex-showroom price while buying a new vehicle, it implies that the money raised is utilised in maintaining roads and infrastructure.What is most notable, however, is that Telangana has adopted the Andhra Pradesh Motor Vehicles Taxation Act,1963, on which the present road tax formula is based. Also Read - Here's a quick guide to taxation rules in India
Why Road Tax is Significant?
The revenue generated through road tax goes in favour of:
- Maintenance and repairing of roads
- Construction of new highways and bridges
- Traffic management and road safety measures
- Infrastructure for public transportation
Factors Affecting the Calculation of Telangana State (TS) Road Tax
Theroad tax payable to the Telangana Transportation Department differs in different aspects. These are as follows: Type of Vehicle The type of vehicle plays a major role in deciding the road tax amount. Two-wheelers, such as motorcycles and SUVs, with low engine capacity have lower road tax whereas four-wheelers have higher road tax. Purpose of Use Different road taxes must be paid according to the purpose of a vehicle, be it personal or business purposes. Commercial vehicles adversely affect the infrastructure and, hence, need to pay higher road taxes. Engine Size The engine size usually affects road tax in terms of increase or decrease. Big motor vehicles usually are charged high taxes because they contribute much more to the roads than smaller vehicles. Type of Fuel Different types of fuel call for different road taxes from vehicles. Electric Vehicles usually don't pay any road tax while diesel vehicles incur higher road tax charges. Age of Vehicle It is also a concern when the age of the vehicle is considered, in that older vehicles pay decreased tax compared to newer vehicles. Applicable TS Road Tax In Telangana, the rates are varied according to the vehicle category and vehicle cost. Following is the break-up of the prevailing road tax structure:
TS Road Tax for Two-Wheelers
The table below shows the lifetime tax followed by the government of Telangana:
| Two-wheeler category | Motorcycles price less than ₹50,000 | Motorcycles price more than ₹50,000 | Invalid carriage |
| Registration of the new Bike | 10% of the price of the bike | 12% of the price of the bike | ₹930 |
| Already registered bike with the age of the bike from registration month: | |||
| No more than two years | 8% | 11% | ₹855 |
| More than two years but no more than two years | 7% | 10% | ₹785 |
| More than three years but no more than four years | 6% | 9% | ₹710 |
| More than four years but no more than five years | 5% | 8% | ₹635 |
| More than five years but no more than six years | 4% | 7% | ₹560 |
| More than six years but no more than seven years | 3.5% | 6.5% | ₹490 |
| More than seven years but no more than eight years | 3% | 6% | ₹415 |
| More than eight years but no more than nine years | 2.5% | 5.5% | ₹340 |
| More than nine years but no more than ten years | 2% | 5% | ₹265 |
| More than ten years but no more than eleven years | 1.5% | 4.5% | ₹195 |
| More than eleven years | 1% | 4% | ₹120 |
TS Road Tax for Three-Wheelers
The table below shows the rate of tax charged by the government of Telangana for three-wheelers depending upon their usage:
| Type of Three-Wheeler | Road Tax charged annually |
| Auto rickshaw carrying passengers | ₹1,000 |
| Small goods carrier for transfer of goods | ₹1,500 |
| Passenger carrier | ₹2,000 |
| Three-wheeler electric car | ₹500 |
TS Road Tax for Four-Wheelers
The table below shows the Life Time Tax followed by the government of Telangana:
| Four-Wheeler Category | Four-wheelers priced less than ₹5,00,000 | Four-wheelers priced more than ₹5,00,000 and less than ₹10,00,000 | Four-wheelers priced more than ₹10,00,000 and less than ₹20,00,000 | Four-wheelers priced more than ₹20,00,000 |
| Registration of the new vehicle | 13% of the price of the vehicle | 14% of the price of the vehicle | 17% of the price of the vehicle | 14% of the price of the vehicle |
| Already registered vehicle with the age of the vehicle from registration month: | ||||
| No more than two years | 12% | 13% | 16% | 17% |
| More than two years but no more than two years | 11.5% | 12.5% | 15.5% | 16.5% |
| More than three years but no more than four years | 11% | 12% | 15% | 16% |
| More than four years but no more than five years | 10.5% | 11.5% | 14.5% | 15.5% |
| More than five years but no more than six years | 10% | 11% | 14% | 15% |
| More than six years but no more than seven years | 9.5% | 10.5% | 13.5% | 14.5% |
| More than seven years but no more than eight years | 9% | 10% | 13% | 14% |
| More than eight years but no more than nine years | 8.5% | 9.5% | 12.5% | 13.5% |
| More than nine years but no more than ten years | 8% | 9% | 12% | 13% |
| More than ten years but no more than eleven years | 7.5% | 8.5% | 11.5% | 12.5% |
| More than eleven years but less than twelve years | 7% | 8% | 11% | 12% |
| More than twelve years | 6.5% | 7.5% | 10.5% | 11.5% |
Telangana's green mobility policy includes exemptions for electric cars (EVs), which means that no road tax is taken from the electric vehicle. Also Read - Know how to pay road tax in India
TS Road Tax for Commercial Vehicle
Commercial vehicle road tax is levied on the various categories of commercial vehicles according to their weight, seating capacity, and function. The tax is charged either quarterly or annually.The table below shows the lifetime tax followed by the government of Telangana:
| Category of Vehicle | Vehicles priced less than ₹5,00,000 | Vehicles priced more than ₹5,00,000 and less than ₹10,00,000 | Vehicles priced more than ₹10,00,000 and less than ₹20,00,000 | Vehicles priced more than ₹20,00,000 | Personalised Vehicle with a seating capacity of 10 or more owned by Individual |
| Registration of the new vehicle | 15% of the price of the vehicle | 16% of the price of the vehicle | 19% of the price of the vehicle | 20% of the price of the vehicle | An additional 2% extra on the rates mentioned in the table |
| Already registered vehicle with the age of the vehicle from registration month: | |||||
| No more than two years | 14% | 15% | 18% | 19% | |
| More than two years but no more than two years | 13.5% | 14.5% | 17.5% | 18.5% | |
| More than three years but no more than four years | 13% | 14% | 17% | 18% | |
| More than four years but no more than five years | 12.5% | 13.5% | 16.5% | 17.5% | |
| More than five years but no more than six years | 12% | 13% | 16% | 17% | |
| More than six years but no more than seven years | 11.5% | 12.5% | 15.5% | 16.5% | |
| More than seven years but no more than eight years | 11% | 12% | 15% | 16% | |
| More than eight years but no more than nine years | 10.5% | 11.5% | 14.5% | 15.5% | |
| More than nine years but no more than ten years | 10% | 11% | 14% | 15% | |
| More than ten years but no more than eleven years | 9.5% | 10.5% | 13.5% | 14.5% | |
| More than eleven years but less than twelve years | 9% | 10% | 13% | 14% | |
| More than twelve years | 8.5% | 9.5% | 12.5% | 13.5% |
TS Road Tax for Vehicles Registered Outside Telangana
For cars registered in other states but used in Telangana, the tax is calculated based on the specifications of the vehicle and the duration of stay. Owners of cars registered in other states can use them in Telangana without paying the road taxfor an initial period of one year.For further details, please see the table below:
| Category of vehicle | Payment Duration | Rate of Tax |
| Light Goods Carriage | Number of days in Telangana | ₹50 each day |
| Medium Goods carriage | Number of days in Telangana | ₹75 each day |
| Heavy Goods Carriage | Monthly | ₹100 each day |
| Non-Ac Public Service Vehicle | Monthly | ₹20 each day |
| Ac Public Service Vehicle | Quarterly | ₹30 each day |
In the case where after the above-mentioned duration the car is to be used in Telangana, it must be registered with the Telangana Transport Department through the change of address or transfer of ownership processes. Upon registration in Telangana, the car shall be subject to the same rate according to its class or category.
How to Pay TS Road Tax?
Here are ways in which you can pay road tax in Telangana: Offline Payment at RTO
- Step 1 : Visit the nearest Regional Transport Office (RTO).
- Step 2 : Submit the required documents (RC, Invoice, Pollution Certificate, ID proof).
- Step 3 : Fill out the road tax payment form.
- Step 4 : Pay the tax at the designated counter and collect the receipt.
Online Payment via Telangana Transport Website
- Step 1 : Visit the Telangana Transport Department portal.
- Step 2 : Navigate to 'Online Services', and select 'Tax Payment'.
- Step 3 : Enter vehicle details (Registration Number, Chassis Number).
- Step 4 : Compute the tax and pay via net banking, UPI, or debit card.
- Step 5 : Download the tax receipt.
Process of Refund of Road Tax in Telangana
You will be eligible for a road tax refund on selling, changing your residence to another state, or scrapping your vehicle if passed. Follow these steps:
- Step 1 : Make the application on the RTO against whom you paid for the road tax.
- Step 2 : Submit the following documents:
- Form 16 (Road Tax Refund Form)
- Original RC book
- Proof of new registration (if applicable)
- Road tax payment receipt
Step 3 : Submit the bank details for a refund. Step 4 : The refund amount would be calculated based on the age of the vehicle and the tax paid. The refunds typically take 3-6 months after verification. Penalty for Non-Payment Road Tax Not paying the road tax in Telangana may lead to:
- Fines ranging from ₹500 up to ₹10,000.
- Confiscation of vehicle by RTO authorities.
- Legal actions for tax evasion.
- In case of failing to pay tax after 12 months of coming to another state, the penalty for that vehicle may climb as high as ₹50,000.
Exemptions and Concessions on Road Tax Some of the vehicles that can avail of exemption from tax or lesser rates are as follows:
- Electric Vehicles : Fully exempted
- Government Vehicles : No road tax
- Diplomatic Vehicles : Exempt under rules from the central government
- Agricultural Vehicles : Reduced tax in case of tractors used in farming
Know the Road Tax Rules in Telangana to Avoid Penalties
The road tax is a necessary fee to be paid by vehicle owners to enable the construction of the state's road network and other related developments. Paying taxes on time makes you a law-abiding citizen and spares you from penalties.If you are planning to buy a new vehicle or move to Telangana, knowing the tax compliance rules is a must. You can check the Telangana Transport Department website for more details.Knowing the rules and using tax planning techniques, you can comply with the norms and also save taxes in the process. It is also recommended to buy a suitable motor insurance policy for your vehicle so that you fulfil the insurance requirement mentioned in the Motor Vehicles Act. Compare and buy the most suitable motor insurance policy for your vehicle and drive worry-free.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
