Fare Calculation
Fare Calculation – Indian Railways
1. Technical Basics
- Fare: The price a passenger pays for a ticket.
- Rate: The unit price per passenger-kilometre (pkm).
- Indian fare structure is “telescopic” – longer the journey, lower the per-km rate.
- Base fare is derived from the class-wise fare table issued by Ministry of Railways (Traffic Commercial), effective 01.01.2020 (last revised 31.03.2023).
- Rounding rule: Base fare always rounded to nearest ₹ 5; minimum fare ₹ 10 (2S), ₹ 35 (SL), ₹ 105 (3A), ₹ 180 (2A), ₹ 360 (1A).
- Distance slabs (km) for telescopic rebate:
1-50, 51-100, 101-500, 501-1000, 1001-1500, 1501-2500, 2501-3500, >3500.
Rebate %: 0, 5, 15, 25, 30, 40, 50, 55.
2. Components of Total Fare
| Component | % of Base Fare | Remarks |
|---|---|---|
| Base Fare | 100 | From Fare Table |
| Reservation Fee (RF) | Flat ₹ 15 (SL), ₹ 30 (3A), ₹ 45 (2A), ₹ 60 (1A) | Zero in 2S/GS |
| Superfast Surcharge (SF) | 30 % of base fare | Min ₹ 45 (3A) / ₹ 30 (SL) |
| GST | 5 % on AC classes only | Rounded to ₹ 1 |
| Service Charge (IRCTC) | ₹ 15 + GST = ₹ 17.7 | Online booking only |
| Catering/ Dynamic fare | Rajdhani/Shatabdi/Duronto | Catered separately |
3. Fare Multiplication Factors
- Mail/Express: ×1.0
- Superfast (≥55 km/h avg): ×1.0 + 30 % surcharge
- Rajdhani/Shatabdi/Duronto: Separate “Premium” table (no telescopic rebate)
- Vande Bharat: 1.4 × Rajdhani base + dynamic flex (±50 %)
- Tatkal: 1.3 × base (SL), 1.4 × base (3A), 1.5 × base (2A), 1.3 × base (1A) – subject to cap.
- Premium Tatkal (PT): Dynamic 1× to 3× base; no refund.
- Senior Citizen: 40 % rebate (men ≥60), 50 % (women ≥58) on base fare only.
- Child 5-11 yrs (without berth): 50 % of base + full surcharge; <5 yrs free.
4. Historical Milestones
| Year | Event |
|---|---|
| 1853 | 1st passenger train Bori Bunder–Thane; fare 1st class ₹ 6, 2nd class ₹ 3 for 33 km. |
| 1892 | Telescopic fare principle introduced by Lord Hutchins Committee. |
| 1948 | Separate “Mail” surcharge created. |
| 1972 | First “Superfast” surcharge (₹ 2 flat). |
| 1989 | Computerised Passenger Reservation System (PRS) → exact fare calculation. |
| 1998 | CONCERT PRS version 2.0 – online nationwide. |
| 2006 | Dynamic “Premium Tatkal” pilot in 50 trains. |
| 2013 | Fuel Adjustment Component (FAC) abolished – merged in base fare. |
| 2020 | Fare table frozen till 31.03.2023 due to COVID-19; flexi-fare suspended. |
| 2023 | Flexi-fare re-introduced in 101 premium trains; Vande Bharat fare capped at 1.5× Rajdhani. |
5. Current Status (2024)
- No separate “FAC” – any fuel price revision absorbed in annual budget.
- Minimum distance charge: 50 km for passenger trains, 200 km for Rajdhani/Shatabdi.
- Platform ticket cost ₹ 50 (raised 01.04.2023) to discourage crowding.
- UTS (unreserved): Fare calculated per km – ₹ 0.30 (2nd), ₹ 0.60 (1st) for suburban; 1.5× for non-suburban.
- Monthly Season Ticket (MST): 15 × single journey fare (2nd class) for 30 days.
- Quarterly Season Ticket (QST): 2.7 × MST.
- Circular journey ticket: 15 % rebate on telescopic fare for ≥8 stations.
- Bharat Gaurav tourist trains: Commercial tariff – no concession, dynamic pricing.
- Railways absorbed ₹ 2,400 cr passenger fare concession in FY 2022-23 under “Leave Travel Concession (LTC)”.
- Digital only: 92 % of reserved tickets sold through IRCTC & UTS mobile app (Mar-2024).
6. Quick-Fire Facts for Exams
- Fare calculation software: FOIS (Freight) & PRS (Passenger).
- Highest fare in Indian Railways: Maharajas’ Express “Heritage of India” tour – ₹ 19 lakhs per person!
- Lowest unit fare: Kolkata Metro ₹ 0.10 per km (with 30 % rebate on smart-card).
- First computerised ticket: New Delhi (Sep-1986).
- Indian Railways earns ~₹ 65,000 cr annually from passenger fare (2023-24 RE).
- AC 3-tier contributes 28 % of total reserved passenger earnings.
- Tatkal quota: 30 % of total berths (max 4 per PNR).
- Vikalp (alternative train): No extra fare difference charged if accommodated in lower class.
- “Sahayak” scheme: Coolie charges fixed ₹ 60 per 40 kg (revised 2022).
Practice MCQs (Railway Exams 2025)
1. Which distance slab gets the maximum telescopic rebate in Indian Railways?
Answer: >3500 km (55 % rebate).
2. Minimum fare for Sleeper class reserved ticket is:
Answer: ₹ 35.
3. Superfast surcharge is calculated on which component?
Answer: Base fare only.
4. In which year was the telescopic fare principle first introduced?
Answer: 1892.
5. Senior citizen concession for women is:
Answer: 50 % on base fare.
6. What is the present cost of a platform ticket across India?
Answer: ₹ 50.
7. Premium Tatkal dynamic fare can go up to:
Answer: 3 × base fare.
8. Which class is exempted from Reservation Fee?
Answer: Second Sitting (2S) & General (GS).
9. GST is levied at what rate on AC class tickets?
Answer: 5 %.
10. The fare of Vande Bharat Express is capped at:
Answer: 1.5 × Rajdhani base fare.
11. Monthly Season Ticket (MST) fare equals how many single journey fares?
Answer: 15.
12. Which committee recommended abolition of FAC in 2013?
Answer: Samal Committee.
13. For child aged 6 years without berth, what fare is charged?
Answer: 50 % of base fare + full surcharge.
14. Circular journey ticket rebate is:
Answer: 15 % on telescopic fare.
15. In which year was the first computerised passenger ticket issued in India?
Answer: 1986.
16. The unit fare for Kolkata Metro after smart-card rebate is closest to:
Answer: ₹ 0.10 per km.
17. Tatkal quota maximum berths per PNR is:
Answer: 4.
Keep revisiting this page; fare rules are updated every April & October through Railway Board’s Commercial Circulars.
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