Road Tax is Linked to Vehicle, Not Owner

• Road tax in India is not transferrable from one person to another as a separate component.
  
• It is paid against the vehicle registration, not the individual owner.
  
• When a vehicle is sold, the road tax remains valid with that vehicle.
  
• The new owner inherits the benefit of any previously paid tax.
  
• No refund or shift of tax amount from one person to another is allowed.
  

During Ownership Transfer

• Road tax is reviewed when transferring ownership at the RTO.
  
• If the tax is fully paid and up to date, no additional payment is needed.
  
• The buyer must verify that road tax dues are cleared by the seller.
  
• The seller should provide original road tax receipts to the buyer.
  
• The RTO updates the Registration Certificate with the new owner’s name.
  

Interstate Transfer Considerations

• When a vehicle is moved to another state, new road tax must be paid.
  
• The old tax is not transferred but may be refunded by the original state.
  
• The new owner is responsible for paying tax in the new state.
  
• A No Objection Certificate and old tax payment proof are required.
  
• Refund must be claimed by the person who originally paid the tax.
  

Necessary Documents for Transfer

• Original Registration Certificate (RC) and valid insurance policy.
  
• Form 29 and Form 30 for ownership transfer.
  
• Identity and address proof of the new owner.
  
• Road tax payment receipt from the seller.
  
• No Objection Certificate (NOC) if transferring across states.
  

Legal and Practical Implications

• Any unpaid road tax becomes the liability of the new owner post-sale.
  
• Road tax cannot be claimed or recovered from the previous owner.
  
• Ensure all tax dues are cleared before signing sale documents.
  
• Retain a copy of the transfer acknowledgment and updated RC.
  

Legal disputes may arise if tax defaults are not disclosed during sale.