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

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

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)

Question:01 Which distance slab in Indian Railways is eligible for the maximum telescopic rebate of 55 %?

A) 1501–2500 km
B) 2501–3500 km
C) >3500 km
D) ≤1500 km

Question:02 Minimum fare for Sleeper class reserved ticket (2026) is

A) ₹ 30

B) ₹ 35

C) ₹ 40

D) ₹ 45

Question:03 Superfast surcharge is calculated on which component?

A) Total ticket fare
B) Base fare only
C) Reservation charge
D) Convenience fee

Question:04 In which year was the telescopic fare principle first introduced?

A) 1885
B) 1890
C) 1892
D) 1900

Question:05 Senior citizen concession for women is:

A) 25 % on total fare
B) 50 % on base fare
C) 75 % on sleeper class fare
D) 100 % on superfast surcharge

Question:06 What is the present cost of a platform ticket across India as per 2026 railway rules?

A) ₹ 10

B) ₹ 20

C) ₹ 50

D) ₹ 100

Question:07 Premium Tatkal dynamic fare can go up to:

A) 1.5 × base fare
B) 2 × base fare
C) 2.5 × base fare
D) 3 × base fare

Question:08 Which class is exempted from Reservation Fee?

A) Sleeper (SL)

B) AC 3-Tier (3A)

C) Second Sitting (2S) & General (GS)

D) AC Chair Car (CC)

Question:09 GST is levied at what rate on AC class railway tickets?

A) 3 %

B) 5 %

C) 12 %

D) 18 %

Question:10 The fare of Vande Bharat Express is capped at:

A) 1.2 × Rajdhani base fare
B) 1.5 × Rajdhani base fare
C) 1.75 × Rajdhani base fare
D) 2.0 × Rajdhani base fare

Question:11 [Monthly Season Ticket (MST) fare equals how many single journey fares?]

A) 10

B) 12

C) 15

D) 20

Question:12 Which committee recommended the abolition of FAC in 2013?

A) Khanna Committee

B) Samal Committee

C) Pitroda Committee

D) Kakodkar Committee

Question:13 For a child aged 6 years travelling without a berth, what fare is charged?

A) Full base fare plus full surcharge
B) 50 % of base fare plus full surcharge
C) 50 % of base fare plus 50 % surcharge
D) No fare is charged

Question:14 What is the rebate allowed on a circular journey ticket issued in 2026?

A) 10 % on telescopic fare

B) 15 % on telescopic fare

C) 20 % on telescopic fare

D) No rebate is admissible

Question:15 In which year was the first computerised passenger ticket issued in India?

A) 1984

B) 1985

C) 1986

D) 1987

Question:16 [The unit fare for Kolkata Metro after smart-card rebate is closest to:]

A) ₹ 0.05 per km

B) ₹ 0.10 per km

C) ₹ 0.15 per km

D) ₹ 0.20 per km

Question:17 What is the maximum number of berths that can be booked under Tatkal quota in a single PNR?

A) 2

B) 4

C) 6

D) 8

Keep revisiting this page; fare rules are updated every April & October through Railway Board’s Commercial Circulars.