Vehicle buyers and owners

Tax at registration, token tax collection and tax on transferring a vehicle. Each answer below explains one point in plain words, works through an example, and links the exact section of the law it relies on.

• Who pays advance tax when I lease a car through a bank, and can I claim it in my own return?Section 231B(1A) 4% advance tax on cars leased to people not on the Active Taxpayers' List, the Youth Business Loan exemption, lease-end transfer and who gets credit.
• How much advance tax do I pay when I register a new car, and is it based on engine cc or the price?Section 231B collects advance tax on a new car as a percentage of its value, with the percentage set by engine capacity band. Rates, value rules and an example.
• How much advance income tax does a truck or goods transport vehicle owner pay under s.234?Section 234 advance tax on trucks and goods carriers: Rs. 2.50 per kg of laden weight, the ten-year rules for light and heavy vehicles, and a worked example.
• Can I buy a car in my wife's, father's or brother's name if I am not eligible to buy it myself?Section 114C extends an eligible individual's status only to parents, spouse and dependent children. The Benami Act covers cars held in another person's name.
• Can a non-filer still buy a car, and what is the Rs. 7 million limit for 'ineligible persons'?Section 114C bars an ineligible person from booking or registering a car worth over Rs. 7 million, from a date the Federal Government notifies. Who is eligible.
• Does the transfer tax go down as the car gets older, and when does it stop?The section 231B transfer tax on a car falls by ten percent a year from first registration and is not collected once five years have passed since that date.
• Is there extra tax on a new car sold on 'own money' before it is registered?Section 231B(2A) adds a fixed tax at registration when a locally made car is sold on before registration. Rates by engine band for tax year 2027 and an example.
• Gari transfer par tax kitna lagta hai? How much tax is collected when a used car is transferred into my name?Section 231B(2) has Excise collect a fixed advance tax by engine size when a car's registration is transferred, tripled for non-filers. Rates for tax year 2027.
• Is the advance tax I paid on buying a car adjustable against my income tax, and can I get it refunded?Section 231B car advance tax is adjustable. Section 168 credits it in the return for the year of collection, and unused excess is refundable under section 170.
• Is advance tax collected when I buy from the manufacturer and again when I register the car?Section 231B(3) collects advance tax when a manufacturer sells a new car, and section 231B(4) stops a second collection at registration for the same buyer.
• Is the tax paid by transporters under s.234 their final tax on transport income?Section 234 tax paid by truck and bus owners is adjustable, not final, since 2013. How it is credited under section 168 against tax on transport income in the return.
• How much more advance tax does a non-filer pay than a filer when buying or transferring a car?The Tenth Schedule makes a person not on the active taxpayers' list pay three times the section 231B car tax and twice the section 234 tax. Side by side tables.
• How much income tax do van, wagon, coaster and bus owners pay per seat with their token?Section 234 per-seat advance tax on passenger vehicles plying for hire: annual AC and non-AC rates by seating capacity, the ten-year limit and a worked example.
• How do I get proof of the advance tax paid on my car registration or transfer to claim it in my return?Section 164 makes the collector give a CPR copy and certificate for vehicle advance tax. How that proof supports credit under section 168, and getting a duplicate.
• Is advance tax charged on registering an imported or reconditioned car if tax was already paid at import?Section 231B(4) excuses registration tax when section 148 tax was collected at import from the same person. How value is set and when the relief does not apply.
• How much s.234 income tax is collected with the token for my car, for a filer and a non-filer, yearly or as a lump sum?Token income tax under section 234 is Rs. 800 to Rs. 10,000 a year or Rs. 10,000 to Rs. 120,000 lump sum, doubled for owners not on the active taxpayers' list.
• Do I pay vehicle advance tax on a motorcycle, rickshaw or commercial vehicle?Section 231B(7) excludes rickshaws, vehicles up to 200cc and goods or public transport vehicles, but section 234 still taxes commercial vehicles by weight or seat.
• Does the income tax collected with my token ever stop, for example after ten years?Section 234 stops token income tax after ten years for cars, buses of ten or more seats and goods vehicles under 8,120 kg. Heavier trucks pay Rs. 1,200 a year.
• Why is there income tax in my car's token tax, and can I claim it in my return?Section 234 makes whoever collects motor vehicle tax also collect federal advance income tax with it. That tax is adjustable and credited in your return.