Vehicle Re-registration During Relocation To Get Simpler

The new rule would be run on a pilot basis in five or more states/UTs

Re-registration of personal vehicles is a major challenge when relocating from one state to another. In what comes as an appreciable move, the Ministry of Road Transport and Highways is now working on revising the re-registration system to make it easier for people moving to a different state.

The new rule will be a part of the IT-based solution for vehicle registration undertaken by the government. As per Section 47 of the Motor Vehicles Act, 1988, a person is allowed to keep the vehicle for 12 months in any state other than the state where the vehicle is originally registered, while the registration process is completed in the new place. 

A person willing to re-register a vehicle has to follow the following steps:

1. No Objection Certificate from the parent state for assignment of new registration mark in another state.

2. Assignment of new registration mark after the road tax is paid on a pro-rata basis in the new state.

3. Application for refund of the road tax in the parent state on a pro-rata basis.

Also Read: You Can Now Renew Your Car Documents By June 30

Initially, the new policy will be run on a pilot basis for Defence personnel, central or state government employees, central PSUs (public sector units), and private sector companies with offices in five or more states or union territories. It will create a new group of “IN” series for all such vehicle registrations.

The motor vehicle tax will be levied for two years or in multiples of two. This scheme will facilitate free movement of personal vehicles across all states of India. This will help in bringing down the the up-front registration cost of a vehicle. So if you are moving to another state, you won't have to pay the entire tax amount again, while waiting for a refund from the previous state RTO.

However, there are still some questions that remain unanswered. Firstly, how will this two-year tax payment system work? Will there be a unified portal where this will be possible? Secondly, different states have different tax rates. Will this unified IN series of numbers also unify the tax rate or will residents of different states still be required to pay different amounts? Only once these questions have been answered will we be able to figure out, how this new policy reform will be beneficial for new car buyers, and how much it will help those relocating from one state to another.

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