Road Tax, Registration & RTO Rules in India
Every car owner must follow some important legal steps, such as paying road tax, registering their vehicle, and following the rules set by the Regional Transport Office (RTO). In the long run, knowing how these things work will save you time, money, and trouble.
It's just as important to know how a car works as it is to know the legal side of owning one, whether you're buying a brand-new car or a certified used luxury car from Car Street India.
What is India's road tax?
When you buy and register a car, you have to pay road tax, which is a fee from the government. It helps keep public roads and infrastructure in good shape.
Who Gets It?
State governments collect road tax, so the rules and amounts differ from state to state.
When Do You Pay It?
You have to pay road tax when you register. It might be:
-
One time (for private cars)
-
Every year or every three months (for business vehicles)
The type of vehicle (two-wheeler, four-wheeler, commercial, or private) is one thing that affects road tax:
-
CC of the engine
-
Price of the car (price outside the showroom)
-
How old the car is
-
Type of fuel (diesel, petrol, or electric)
How much will you have to pay in road tax?
The rate is different in each state. Here are some examples:
-
Delhi: 4% to 10% depending on the size of the engine and the price of the car
-
7%–11% in Maharashtra
-
For luxury cars in Karnataka, up to 18%
-
Tamil Nadu: About 10%
-
Electric Vehicles: Usually don't have to pay taxes or pay less.
Tip: When you buy a used luxury car, Car Street India can help you figure out how much road tax you'll have to pay, so there are no surprises later.
What does it mean to register a car?
Registering your car with the government is the legal process that lets you drive it on public roads. After you register your car, you will get a registration number (licence plate) and a Registration Certificate (RC).
What you need to register your car
You will need the following to register your car at the RTO:
-
Form 20: Application for Registration
-
Bill for the car
-
Certificate of insurance
-
Receipt for road tax
-
Proof of ID and address
-
Temporary registration number for new cars
-
Certificate of Pollution Under Control (PUC)
-
Pictures the size of a passport
Tip: If you buy a used luxury car from Car Street India, professionals will take care of all the paperwork, including transferring the RTO registration.
Different kinds of registration in India
1. Temporary Registration
Dealers give them out, and they are good for up to a month. You can drive the car until you finish registering it permanently.
2. Registration that lasts forever
You have 30 days to do it. This is your last registration with a real license plate.
3. Re-Registration
When you need it:
-
You move the car to a different state for more than a year.
-
You are giving someone in another state ownership of the property.
To re-register, you will need a No Objection Certificate (NOC) from the original RTO.
What Are the Rules for RTO?
The government agency that takes care of all things vehicle-related is the Regional Transport Office (RTO). This includes registering vehicles, getting permits, paying taxes, and getting licenses.
Every owner needs to know these important RTO rules:
-
Always have a copy of your RC, insurance, PUC, and driver's license with you.
-
You have to pay your road tax on time.
-
If you move to another state or sell your car, let RTO know.
-
Private cars can stay registered for 15 years, but after that, they need to be renewed every 5 years.
Changing the owner of a used car
It is very important to officially transfer ownership when you buy a used car. This includes:
-
Form 29 and Form 30 must be signed.
-
Sending in the original RC
-
If you're moving the car to a new state, you need to get it re-registered.
-
Paying any outstanding road tax
Car Street India makes sure that all paperwork is legal, that ownership is transferred, and that they can even help with interstate registration if necessary.
What Happens If You Don't Follow RTO Rules
If you don't register your car or renew your papers, you could:
-
Big fines
-
Taking a car
-
Punishments by law
For example:
-
Fine of ₹5,000 for driving without a valid RC
-
No PUC: ₹10,000
-
No insurance: ₹2,000 for the first time
RTO Advice for Owners of Luxury Cars
Here's how to stay legal if you're buying a used luxury car:
-
Make sure there are no loans or hypothecation on the RC by checking it carefully.
-
Check the status of the taxes paid.
-
Check that the chassis number is the same on all the papers.
-
Car Street India has a detailed RTO history report for every vehicle.
Last Thoughts
It's important to know the rules for road tax, registration, and the RTO in India if you want to buy a new car or a used luxury car. It protects you from getting into legal trouble and makes sure your car stays safe and valuable.
We don't just sell luxury cars at Car Street India; we also help you with all the paperwork and legal steps in a clear way.
Why should you trust Car Street India?
-
More than 20 years of experience
-
Thousands of buyers in India trust us.
-
Help with RTO from start to finish and registration
-
Full legal check of used luxury cars
Recent Comments