Alert, car/bike buyers! “IN” registration plates launch likely: Benefits, disadvantages

This, in general, scheme will facilitate free movement of personal vehicles across any state of India upon relocation from the original place of registration.

By:April 29, 2021 4:25 PM

Just brought a new car or bike in Maharashtra but due to family or work commitments, have to shift to Delhi? The ideal remedy for this situation will be to either sell the vehicle and purchase a new one at your next destination. Or, take the hassled approach of re-registering your new vehicle in the destination state. More often than not, people prefer the first method, especially if its a long term commitment at the new place. The Indian government seems to have recognised this hindrance and has now proposed a standard “IN” vehicle registration plate. This rule, if implemented, will help passenger vehicle owners while relocating. As we understand from the information available to the public, “The step comes in the context of several citizen-centric steps and an IT-based solution for vehicle registration taken by the government.”

The current laws allow the vehicle owner to keep his other state registered automobile in the new destination for 12 months. Within these 12 months, the owner is expected to re-register the vehicle at his new place. The cost involves paying the road tax for the vehicle in the new state. In some cases, like Bengaluru, the road tax is quite high. This eventually leads the owner to sell his vehicle and procure a new one instead. The owner will also have to apply to his home state for a Noc for the transfer to his new destination. Moreover, he will also have to apply for the road tax refund in his home state and that is going to be a long drawn process.

The new proposed rule aims to negate this by charging only a two-year or multiple of two road tax at the time of registration. Adding an “IN” number plate as a blanket will help reduce these to a great extent. This will in short, remove the state identification like MH, DL, RJ, and so on. At present, a demo mode or trial basis is being conducted on government, PSUs, and defence personnel. Organisations which have their offices in five or more states can also participate in these trials. All RTOs will be issuing out IN plates to the eligible candidates. This, in general, scheme will facilitate free movement of personal vehicles across any state of India upon relocation to a new state.

The benefits will be as listed above wherein people will not have to pay a state-specific tax on entering a new state than where their car was registered. Moreover, this will lead to less state-divide where someone with a DL plate is driving in Mumbai and the locals from the latter gang-up on the former in the unfortunate case of an accident. There will also be huge savings as one will not have to re-register their vehicle if they are going to live in some other state than where the car was initially registered.


The de-merits will be in the form of less revenue to the exchequer in terms of road tax. There could also be possibility of fake plates in excess as all will start with “IN”.

All in all, the positives seem to outweigh the negatives and this, we believe should be implemented. What do you say?

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