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Road Tax in Punjab: Complete Guide on Calculation, Rates and Payment

Team AckoApr 10, 2024

The state of Punjab, named as it is for the five rivers that flow across the state, is also known for other things. Some of them include the famous Golden Temple of Amritsar, the ancient battlefield of Kurukshetra, the birthplace of Astronaut Kalpana Chawla (Karnal, Haryana, which was incidentally named after Karna, often referred to as the true hero of the epic of Mahabharat) and many other things.

If you are a vehicle owner residing in Punjab or a tourist travelling across the state to visit these places, then you are liable to pay the Punjab road tax, levied by the Punjab State Government, in accordance with The Punjab Motor Vehicles Taxation Act, 1924.

Contents

Road Tax in Punjab
How to Pay Punjab Road Tax Online?
Punjab Road Tax Calculation
Road Tax in Punjab for Two-Wheelers
- Two-Wheeler Road Tax Rates in Punjab Before the Amendment
- Two-Wheeler Road Tax Rates in Punjab After the Amendment
Road Tax in Punjab for Three-Wheelers
Road Tax in Punjab for Four-Wheelers
- Four-Wheeler Road Tax Rates in Punjab Before the Amendment
- Four-Wheeler Road Tax Rates in Punjab After the Amendment
Road Tax for Other State Vehicles in Punjab
Penalty for Non-payment of Punjab Road Taxes
List Of Different Motor Insurance Plans
Concluding Remarks
Frequently Asked Questions

Road Tax in Punjab

The Government levies road tax in Punjab for all commercial and private vehicles depending on their seating capacity, specification, and tonnage. It is collected from vehicle owners for the construction and maintenance of roads.

Equipped with advanced technology, the Punjab Transport Department has efficiently embraced automation and digitisation. Punjab is the 1st Indian state to introduce VAHAN and SARATHI throughout the state.

How to Pay Punjab Road Tax Online?

To make it convenient for vehicle owners, the relevant road tax levied on them can be paid online through the official website of Punjab Transport . This is a quicker and more efficient way to pay your road tax liability, which also helps in saving a significant amount of time.

You can complete the Punjab road tax online payment process by following the simple steps mentioned below:

Step 1: Visit Punjab Transport Org’s official portal.

Step 2: Select the ‘Online Motor Vehicle Payment System’ option.

Step 3: If you’re a registered user, enter your Login ID and Password. After this, enter the given captcha and click on the ‘Log In’ tab to access the site.

Step 4: Non-registered users can select the ‘New User Click Here’ option to create an account.

Step 5: Fill in all the required information like email, username, address, login ID, phone number, the DTO that you are registered with etc., as per the instruction on your screen.

Step 6: Next, choose the ‘State Bank of India’ option and enter the given captcha. Now click on the ‘Save’ option to complete your registration.

Step 7: Log in to your account by following the process for registered users. You can select your preferred mode of payment from the available options, which include internet banking, debit card and credit card.

Step 8: Complete the online road tax payment for Punjab through your State Bank of India account. After the payment is successful, save the tax receipt for future reference.

If you’re not comfortable paying the RTO road tax for Punjab online, you can visit one of the nearest RTOs to clear your tax liabilities. Read on to learn more about the Punjab road tax calculator.

Punjab Road Tax Calculation

The Punjab Motor Vehicles Taxation Act of 1924 governs the regulations regarding the collection, calculation and execution of Punjab road tax. The act clearly states the rules for the mandatory payment of the road tax levied on vehicle owners in Punjab, refund of tax in some instances, grant of a licence, maintenance and determination of tax.

It is calculated depending on several factors, which include:

Age
Cost
Intended Use
Engine Power

Keep reading to know more about the Punjab road tax slab.

Road Tax in Punjab for Two-Wheelers

Before learning about the different tax slabs, you should understand that two types of tax rates are used; one before any amendment was made to The Motor Vehicles Taxation Act 1924 and another one post its amendment in 1993.

Two-Wheeler Road Tax Rates in Punjab Before the Amendment

The table below shows the road tax for bikes in Punjab based on age and weight.

Bike Age	Road Tax Levied On Bike with an Unladen Weight of up to 95 Kg (Rs)	Road Tax Levied On Bike with an Unladen Weight of more than 95 Kg (Rs)
Under 3 years of age	120	400
Between 3 and 6 years	90	300
Between 6 and 9 years	60	200
More than 9 years	30	100

Two-Wheeler Road Tax Rates in Punjab After the Amendment

Bike owners, who have registered their vehicles post the amendment of the act, are required to put down 1.5% of their bike’s cost as road taxes if the bike in question has an engine power of up to 50cc. Whereas, if the bike's engine capacity is more than 50cc, then the road tax rate applicable would be 3% of that bike’s cost.

Remember that in either case, vehicle owners have to make a lump-sum payment of these taxes rather than paying in installments.

Road Tax in Punjab for Three-Wheelers

Three-wheeled vehicles under the possession of manufacturers and dealers in Punjab are subject to the following road tax amounts:

Motor Vehicle Category	Governed By	Road Tax
Three-wheeled vehicles	The Punjab Motor Vehicles Taxation Act, of 1924 (Before Amendment)	Rs 4,000 per annum for every 50 vehicles or part thereof
Three-wheeled vehicles	The Punjab Motor Vehicles Taxation Act of 1924 (After Amendment)	Rs 8,000 per annum for every 50 cars or part thereof

Road Tax in Punjab for Four-Wheelers

The tax slab is also determined for four-wheelers, depending on when the vehicle was registered. Here’s what you should know.

Four-Wheeler Road Tax Rates in Punjab Before the Amendment

The table below shows the road tax for cars in Punjab based on their age and number of seats.

Car Age	Road Tax Levied for Seating Capacity Up to 4 Seats and 5 Seats (Rs)	Road Tax Levied for Seating Capacity Up to 6 Seats (Rs)
Under 3 years of age	1800,2100	2400
Between 3 and 6 years	1500,1650	1800
Between 6 and 9 years	1200, 1200	1200
Older than 9 years	900,750	7500

Even though lump-sum payment is essential, vehicle owners must service these road tax liabilities quarterly.

Four-Wheeler Road Tax Rates in Punjab After the Amendment

Car owners who have registered their vehicles after the amendment of the taxation guidelines are required to pay road tax in Punjab for a new car depending on its cost rather than its age. In such cases, any car for personal use would be subject to road taxes at 2% of the car’s cost.

Road Tax for Other State Vehicles in Punjab

The road tax levied on commercial vehicles not registered in Punjab can be categorised into the following groups:

Group	Road Tax Levied (Rs)
Tractor, Motor Car or Omnibus [Seating capacity of up to 10 passengers (exclusive of the driver)]	200
Any Other Kind of Motor Vehicles	1500
3-Wheeled Vehicles	NA

Penalty for Non-payment of Punjab Road Taxes

Every vehicle owner in Punjab must pay road taxes during registration. Failure to do so can lead to hefty penalties, ranging from Rs 1000 TO Rs 5000. In extreme cases, state officials can also seize your vehicle’s documents. Therefore, ensuring that the RTO tax in Punjab is paid on time is very important.

List Of Different Motor Insurance Plans

Purchasing vehicle insurance is a mandatory requirement per The Motor Vehicles Act of 1988. Non-compliance can lead to penalties and legal issues. This is why you must purchase vehicle insurance and keep the policy active by renewing it before its expiry date. Check out the various motor insurance plans mentioned below and select the one that best suits your needs.

Car Insurance	Bike Insurance
Comprehensive Car Insurance	Comprehensive Bike Insurance
Third-Party Car Insurance	Third-Party Bike Insurance
Commercial Car Insurance

Concluding Remarks

As per The Punjab Motors Vehicles Taxation Act of 1924, paying road tax is obligatory, and evading the same can result in heavy penalties. Therefore, paying your taxes or clearing any dues is very important.

Additionally, purchasing vehicular insurance as per The Motor Vehicles Act of 1988 protects you from the financial and legal liabilities that may arise due to unfortunate events in life. Hence, you may consider buying your vehicle insurance policy from reputed insurance providers like ACKO, which provides multiple insurance policies with various add-ons.

Frequently Asked Questions

Below are Few FAQs Related to Road Tax in Punjab

Can I Check the Tax Validity of My Vehicle with the Registration Number?

Yes, the tax validity of your vehicle can be verified using its registration number.

Where Can I Pay My Vehicle Tax?

You can pay your vehicle’s road tax at one of the local Regional Transport Offices, i.e. RTOs.

Can I Drive Another State Vehicle in Punjab?

If you’re moving to Punjab temporarily, driving other state vehicles for the initial 30 days is legal. However, per the new mandate issued by the State Transport Department, if a car is kept in Punjab for more than a year, then a new registration certificate must be obtained from the state government.

Which Vehicles Don’t Have to Pay Road Tax in Punjab?

Road tax in Punjab is levied on all types of vehicles registered in Punjab except three-wheeled ones. Motor vehicles owned by the Central and State governments are exempted from road tax liability. Furthermore, motor vehicles belonging to educational institutions and hospitals (ambulances) used solely to serve pupils are exempted from road tax liability.

Within How Many Days Should the Road Tax Be Paid?

The road tax in Punjab should be paid within a month from the date of vehicle registration. It must be paid to the respective state’s taxation authority where the vehicle has been registered.

How Can I Check My Road Tax in Punjab?

You can check RTO tax details by visiting the official website of VAHAN, a flagship e-Governance application. Enter all the required details and know your motor vehicle tax information.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes.

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