Jharkhand Road Tax

If you own a vehicle in Jharkhand, you are required to pay a road tax which is levied and regulated by the Government. This tax amount varies on the basis of your vehicle type and the purpose for which you use the vehicle. Depending on the time that has passed since your vehicle’s registration, the percentage of the tax you must pay during registration changes. This percentage may increase depending on your vehicle’s price. 

Shirking to pay road tax in Jharkhand can invite hefty penalties and hence, it is crucial to stay disciplined where taxes are concerned. Another important thing to remember when it comes to the taxation and registration of your vehicle is motor insurance. The very Motor Vehicles Act that mandates the payment of road tax also states that having motor insurance is compulsory. Hence, in order to avoid unfavourable legal implications, it is wise to pay your road taxes in time and to own an active motor insurance plan.

There are guidelines laid down by the Motor Vehicles Taxation Act which are followed by the Jharkhand State Government to calculate Jharkhand vehicle tax. The Jharkhand road tax rate is decided based on several factors such as:

• Unladen weight of the vehicle

• Engine capacity of the vehicle

• Model of the vehicle

• Age of the vehicle

• Location

• Purpose

The road tax charged at the time of registration is 6% of the vehicle’s price without GST.  You may refer to the information given below to understand the taxation system for two-wheelers in Jharkhand:

At the time of registration, Jharkhand RTO charges 6% of the vehicle price (without GST) as road tax. The RTO also charges 3% tax if your car is a second-hand vehicle. Additionally, 15% tax is levied if the vehicle costs more than ₹15 Lakhs (no GST). Check out the below to understand how road tax in Jharkhand is levied at different stages.

Here are the basics of the penalties you might have to pay should you fail to pay your road tax in Jharkhand:

• The penalty can amount up to 100% of the total tax that was not paid during the previous taxation cycle

Here’s how the road taxation system functions in Jharkhand:

• State Government: State Governments are responsible for the construction and maintenance of the roads within the state. Hence, they levy road tax on vehicles and then use the tax collected to maintain the existing roads and also for the construction of new roads in the state.

• Central Government: The Central Government is responsible for the collection and regulation of additional taxes involved in the road taxation system. This includes additional cess, goods and services tax, central excise, etc.

The State Governments have made it mandatory for all vehicle owners to pay road tax. So, while you enjoy driving your vehicle, ensure that you pay the online road tax in Jharkhand. Another important rule to remember while buying a vehicle is insuring it with a motor insurance. As per the Motor Vehicle Act, you must have a valid motor insurance to be able to drive your vehicle on Indian roads. If you wish to get your own vehicle in Jharkhand, you can explore the motor insurance plans available on Bajaj Markets.