What is Road Tax & Toll Tax in India?

What is Road Tax & Toll Tax in India?

All state and national highways in India belong to the government, and road tax is applicable to all those who use them. The taxes collected are used to maintain the roads so that drivers and riders have no issues on the road.

In India, every highway that is a state or national highway, is taxed by the Indian Government for raising the cost of making as well as the maintenance of the roads. This is a very essential cost which allows us to be able to travel comfortably through states, towns and cities conveniently. Also security on these roads are very important since highway robbery needs to be controlled in some parts of India. This road taxation helps to ensure that the cost of road safety and security is also maintained. There are various kinds of road taxes, that are based on the state you are traveling in. The most common road tax that is collected from vehicles, is the toll tax.

Who should Pay Road Tax?

Any individual who has purchased a vehicle for personal or commercial use must pay road tax. The vehicle that is bought can be a trailer, a commercial truck, a four-wheeler, a three-wheeler, and a two-wheeler.

Payment of Road Tax Online

The procedure to pay the road tax online is mentioned below:
  • Visit https://parivahan.gov.in/parivahan/.
  • Under the ‘Online Services’ section, you will find the ‘Vehicle Related Services’ option, click on it.
  • In case the vehicle is registered in Delhi or Sikkim, click on ‘Delhi & Sikkim State’. In case the vehicle is registered in any other state, click on ‘Other States’.
  • Enter the registration number and click on ‘Proceed’.
  • On the next page, you will find the option to pay the road tax online.

Toll Tax

While this tax is mandatory and is charged in toll plazas along the highways across India, the rates vary because each toll plaza is accountable for a certain distance of the road. This taxation does is exempted for certain people including VIPs in the country of certain officials who have been listed in the last section.

Toll Tax Rates

Based on the policies of the National Highways Fee (Determination of Rates and Collection Rules, 2008, the toll tax rates are supposed to undergo revision each year and take effect from April 1, the are the current rates are available on the website and differ based on location and distances.

Toll Tax Policy

Policy for collecting toll tax is based on the National Highways Act, 1956 (48 of 1956) provisions as well as the National Highways Fee (Determination of Rates and Collection) Rules, 2008, when this amendment was made. As of 2016 there are 390 toll tax collection fee plazas across the national highways in India. Based on the current policy literature any road with 6 lanes with 4 lanes already running is tolled even if the highway is not fully completed. As of 2016, there is no separate regulatory authority running independently for this taxation.

Toll Tax Exemption List

Any vehicle which has the following people will be exempted toll tax across India:
  1. President of India
  2. Prime-Minister of India
  3. Vice-President of India
  4. Chief Justice of India
  5. Governor of any State in India
  6. Speaker of the House of People
  7. Cabinet Minister of the Union
  8. Judge of the Supreme Court
  9. Governor of any State in India
  10. Minister of State of the Union
  11. Member of Parliament
  12. Lieutenant Governor of any Union Territory in India
  13. Chief of Staff holding a full General or equivalent rank
  14. Chairman of the Legislative Council of a State
  15. Speaker of the Legislative Assembly of any State in India
  16. Chief Justice of a High Court
  17. Judge of a High Court
  18. Army Commander or Vice-Chief of Army Staff and equivalent in other services
  19. Foreign dignitary on State visit
  20. Chief Secretary to a State Government within concerned State
  21. Secretary to the Government of India
  22. Secretary, Council of States
  23. Secretary, House of People
  24. A Member of Legislative Assembly of a State in the state premises, with identity proof
  25. A Member of Legislative Council in the borders of their respective State, with identity proof
  26. Awardees of the following recognition, with adequate identity proof:
    • Param Vir Chakra, Ashok Chakra
    • Maha Vir Chakra, Kirti Chakra
    • Vir Chakra
    • Shaurya Chakra

The other vehicles which are exempted from the toll tax include:

  1. Vehicle under or with a passenger who is from the Ministry of Defence including people eligible for toll exemption based on the provisions of the Indian Toll (Army and Air Force) Act, 1901 and laws including the Navy
  2. Central and State armed forces in uniform including para military forces and police
  3. An executive Magistrate
  4. Vehicle belonging to the fire-fighting Department or organisation
  5. Vehicle belonging to the National Highways Authority of India
  6. Vehicle belonging to any other Government agency or organisation for purposes of survey, inspection, operation or construction and maintenance of national highways
  7. Vehicle used as ambulance
  8. Vehicle used as funeral van



For more information on this, visit TAXAJ

Posted by Aashima
Team TaxaJ



    • Related Articles

    • How to Start a Logistics or Transport Business in Goa

      Authored by Taxaj Corporate Services LLP ? Introduction Goa, widely known as India’s sunshine state, is not just a hub for tourism but also an emerging destination for logistics and transport opportunities. While the beaches, culture, and lifestyle ...

    • Company registration eligibility in India

      Introduction Company registration in India is a crucial step for entrepreneurs looking to establish a legal entity for their business. The Ministry of Corporate Affairs (MCA) has set certain eligibility criteria that must be met for successful ...

    • Company registration certificate in India

      In India, starting a business requires the proper legal framework and compliance with various regulations. One of the essential documents for establishing a company is the Company Registration Certificate. This certificate serves as proof of the ...

    • Company registration process for startups in India

      Starting a business in India requires entrepreneurs to navigate through various legal and regulatory processes. One of the most crucial steps is company registration. This process establishes a legal entity and provides several benefits, including ...

    • Company Tax Return Audit In India

      Tax Audit In India Section 44AB specifies that certain categories of individuals or businesses require tax audits by a chartered accountant in order to ensure compliance with the laws and to keep fraudulent tax practices in check. What is the ...