Road Tax Refund After Vehicle Scrapping – Complete Guide

When your vehicle’s fitness certificate is still valid, but the vehicle has been scrapped, you can claim a road tax refund from the concerned RTO. Many vehicle owners are unaware of this benefit and end up losing money that rightfully belongs to them.

What is Road Tax Refund?

Road tax is paid to the RTO at the time of vehicle registration. If your vehicle is scrapped before its registration or fitness validity ends, you can apply for a pro-rata refund of the remaining road tax.

When Can You Claim Road Tax Refund?

You are eligible for a road tax refund if:

• Your vehicle has been scrapped legally at an authorized scrapping center.
• The fitness certificate or registration is still valid at the time of scrapping.
• You have the original RC and road tax payment proof.

Documents Required for Road Tax Refund

To claim the refund, you must submit the following to the concerned RTO:

• Scrapping certificate from an authorized vehicle scrapper
• Original RC (Registration Certificate)
• Valid fitness certificate (if applicable)
• Road tax payment receipt
• ID proof & address proof of the registered owner
• Application for refund in prescribed RTO format

Step-by-Step Process

1. Scrap Your Vehicle → Approach an authorized scrapping facility and obtain a scrapping certificate.
2. Prepare Documents → Gather RC, fitness, tax receipt, and owner’s KYC documents.
3. Submit to RTO → File an application for road tax refund with all proofs.
4. Verification by RTO → The RTO will verify the scrapping certificate and tax records.
5. Refund Issued → Refund amount will be calculated proportionately and transferred to your bank account.

Why This Matters?

Claiming a road tax refund ensures that you don’t lose money for the unused period of your vehicle’s fitness. It also encourages legal scrapping and recycling of vehicles, helping both the environment and vehicle owners.