Proposed System Could Ease Re-Registering A Vehicle In A New State

• The Ministry has proposed new rules, which will first be tested as a pilot subject to specific areas only.

• Under the proposed regulations, the collection of road tax will happen every two years or in multiples of two.

• Current laws dictate that one needs to re-register a vehicle within 12 months of relocating.

Re-registration of a vehicle after moving to a new state can be hectic. But the Ministry of Road Transport and Highways is working on easing the otherwise cumbersome process by proposing new rules. 

But before that, let’s understand the system that’s currently in place:

• Getting a ‘No Objection Certificate’ from the parent state for a new registration mark in another state.

• Getting a new registration mark after the road tax has been paid on a pro-rata basis in the new state.

• Applying for road tax refund (on a pro-rata basis) in the parent state

Paying road tax in a different state can be expensive, considering it could take quite some time to get your refund of the old tax paid in the parent state. Keeping this in mind, here’s what the Transport Ministry has suggested:

• A new registration system that uses the ‘IN’ series.

• The IN registration will be available for Defence personnel, employees of Central Government, State Governments, Central/State PSUs (public sector units), and private sector companies/organizations, which have their offices in five or more States/Union Territories.

• The motor vehicle tax will be charged every two years or in multiples of two.

The government says the proposed rules will allow free movement of any vehicle upon relocating to a new state, without changing the vehicle registration number. Expect more details on this soon.