This Indian state has the lowest road tax for new vehicles

A new car’s ex-showroom price is always lower than its on-road price, because the on-road price also includes cost of insurance and the RTO charges of registration, road tax and miscellaneous charges. These charges vary from state to state, reflecting in the on-road price varying as well. The road tax is imposed by state governments and is decided on the basis of various factors including engine capacity, unladen weight, seating capacity, cost (ex-showroom) price of vehicle and number of vehicles registered under a single owner’s name. 

We’ll dive into the RTO charges for registering a car, what documents are needed to register a new car, road tax charges in other states, as well as Bharat Series (BH) registration fees and more. If you’re about to buy a new car, this article will help you understand what the RTO charges are for registering a new car. 
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What are the RTO charges for registering a car?

Every new vehicle needs to be registered at a Regional Transport Office (RTO) before it can be used on the road legally. The RTO charges vary from state to state but in general there are similar components that make up the total. 

How much road tax do I need to pay in different States of India?

The road tax component makes up the largest part of RTO charges for new car registration and differs between states. We’ve compiled the road tax charges in different states for you to get an idea of how much road tax you can expect to pay on your next car based on where you reside. 

From the table, you can see that the state of Himachal Pradesh has the lowest road tax in India, leading to the on-road price of new cars being lowest in HP. On the other hand, Karnataka has the highest road taxes in India, accordingly reflected in the highest on-road prices of new cars. 

What documents do I need to register a new car?

The responsibility of registering a new car in India usually lies with the dealership, who arranges for all documentation at the time that the car is sent to the RTO for registration. Here is the list of documents required: 

• Invoice: The retail invoice of your car and the manufacturer invoice with your vehicle’s chassis number.
• Sale Certificate (RTO Form 21): This includes details of your vehicle including the model, manufacturing dates, invoice amount, etc.  
• Road Worthiness Certificate (RTO Form 22): This form confirms that the vehicle comes with valid Safety, Road Worthiness and Pollution Certificates.  
• Copy of Insurance Certificate: You need to submit this mandatorily whether you’re self-registering or registering through a dealer.
• Adding Loan HP (RTO Form 34): Form 34 (optional for adding loan hypothecation, if vehicle is bought on a loan) has to be submitted.
• Vehicle Registration Form (RTO Form 20): This is submitted along with a copy of the Temporary Registration Form (valid for 30 days).
• Valid ID & Address Proof: A valid proof of address and identification must be provided.
• Chassis Imprint on Plain Paper taken by Pencil 
• Additional Documents: If you’re registering your car in a new State and come from another State, you also need to submit the IGST (Inter State GST) Bill.

What is the fee for Bharat Series (BH) vehicle registration?

The Bharat Series (BH Series) of vehicle registration is meant to make vehicle registration easier for individuals who frequently relocate their state of residence due to work commitments. The BH Series is only applicable for non-transport vehicles and is only available to employees of State and Central government offices, public sector undertakings and private sector organisations that have offices in at least four Indian states. The fee for Bharat Series vehicle registration is as follows: 

FAQs

Q. What is a vehicle tax?

Motor vehicle tax or road tax is a tax that needs to be paid to use a vehicle on a public road. 

Q. What are the cheapest states in India to own a car?

The cheapest states in India to own a car are Himachal Pradesh, Arunachal Pradesh, Assam and Gujarat. The cheapest Union Territories in India to own a car are Puducherry, Chandigarh and Daman and Diu. 

Q. What is a road tax?

A road tax is levied by the government for all road users on the basis of the vehicle’s engine capacity, seating capacity and other various factors. 

Q. How much is road tax for cars in India?

Road tax for cars in India differs from state to state and is calculated based on the engine capacity, seating capacity, cost of the car and other factors. 

Q. Who is eligible for a Bharat Series (BH) registration for their vehicle?

People eligible for Bharat Series registration for their vehicles include employees of State and Central government offices, public sector undertakings and private sector organisations that have offices in at least four Indian states.