Road Tax in India Explained: Vahan, Parivahan and BH Series
Key Highlights:
- Road tax varies by state and vehicle type, and is mandatory for all vehicles, with some exemptions for electric and hybrid models.
- Vahan and Parivahan portals simplify online payment, tracking, and management of road tax and other vehicle-related services.
- The BH-series number plate scheme offers flexible 2-year tax instalments for eligible vehicle owners who frequently relocate across states
What is Road Tax?
As mentioned above, a road tax is a state-level tax collected for road infrastructure development in the region. It is applicable to all types of motor vehicles registered in India, whether private or commercial. However, some states have exempted electric and hybrid vehicles from road tax.
When is Road Tax Paid?
A person pays road tax when they register a new vehicle. For private vehicles, it is typically paid as a lifetime tax, which covers 15 years for personal usage. For commercial vehicles, it is usually paid at given regular intervals, which could be annually, quarterly or monthly, depending on the state regulations.
One also needs to pay the road tax when transferring the vehicle from one state to another. In this case, the applicant needs to pay the road tax in the new state and claim a refund from the previous one.
To make the above process easy for those who frequently relocate, the government of India introduced the BH (Bharat) series number plate in 2021. It changed the road tax structure for eligible vehicle owners. Under this scheme, the road tax is not paid upfront for the first 15 years. Instead, it is paid in 2-year instalments, making it more flexible for those who frequently relocate across states (e.g. central government employees, defence personnel, and corporate employees).
Once the tax validity expires, the owner must renew the road tax when re-registering the vehicle for further use. Commercial vehicles also require periodic tax renewal as per the state’s norms.
How Road Tax is Calculated?
States have the right to decide their own tax rates on vehicles. In general, it is calculated based on the following factors: -
- Vehicle's category
- Ex-showroom price
- Fuel type
- Gross weight of the vehicle
- Engine capacity
- Vehicle's age (older vehicles for re-registration may have lower road tax)
For private vehicles, the tax is usually calculated as a percentage of the vehicle’s ex-showroom price. For commercial vehicles, it may be based on gross vehicle weight (GVW) and intended usage.
VAHAN and PARIVAHAN: Digital Platforms for Vehicle-Related Services
The Ministry of Road Transport & Highways (MoRTH) has introduced two digital platforms for easy and transparent access to vehicle-related services - Vahan and Parivahan.
Vahan Portal
The Vahan portal is actually a digital register for vehicles in India that centralises vehicle data and automates processes for both citizens and transport authorities.
On Vahan, you can access the following features and services:-
- New vehicle registration
- Renewal and transfer of registration
- Change of address in registration records
- Permit issuance and renewal (including national and interstate permits)
- Payment of road tax and calculation of tax liabilities)
- Issue and renewal of fitness certificate
- No Objection Certificate (NOC) applications
- Challan and penalty tracking
- Online receipts and document downloads
- Data integration for insurance, PUC, and fleet management compliance
Parivahan Portal
Parivahan is a broader platform that offers various transport-related citizen services like:
- Online payment of road tax
- Issuance and renewal of driving licences
- Learner’s license, driving school registration
- Permit issuance, tax payment, and document downloads
- Trade Certification
- Online traffic challan payment
Steps to Pay Road Tax
The road tax can be paid both offline and online. For offline, you need to visit your area's transport office. But if you want to save your time and avoid the physical hassle, you can follow these simple steps to pay road tax online:
- Visit the Parivahan portal
- Go to ONLINE SERVICES → VEHICLE-RELATED SERVICES
- Select your state
- Enter registration number/document details
- Review & pay applicable tax via net banking/UPI/card
- Download receipt/certificate
Tips for Vehicle Owners Regarding Road Tax
- Always check the state-specific tax rates before buying a vehicle.
- If buying a used vehicle from another state, verify that the road tax is paid.
- Keep digital and physical copies of the payment receipt.
- Use Vahan and Parivahan to stay updated on your tax status.
- For electric and hybrid vehicles, check if your state offers exemptions on road tax.
Final Words
Road tax is an unavoidable part of vehicle ownership. While it may feel like an extra burden on top of the vehicle’s cost, it plays a crucial role in maintaining road infrastructure. With platforms like Vahan and Parivahan, paying and tracking road tax has become much easier, saving owners from long RTO visits. Whether you’re a new buyer or relocating with your vehicle, understanding road tax rules will help you stay compliant, avoid penalties, and make informed decisions.
FAQs
1. Can I pay road tax in instalments?
If you have the BH series number plate, you have the option to pay the road tax every two years or in multiples of two years. For a regular number plate, road tax is usually paid as a one-time payment for 15 years.
2. Is road tax refundable?
Yes, you can claim a refund for your road tax from your original state if you've moved to another state and pay tax there.
3. What is the main difference between the Vahan and Parivahan portals?
The Vahan portal is vehicle-centric and handles registration and records, whereas the Parivahan is an all-in-one portal that offers both vehicle and driver-related services.