BH vs Normal Registration: Which Saves You More on Road Tax

When you buy a vehicle in India, one of the largest additional expenses is usually the road tax cost. The amount you pay depends on your registration choice. In 2021, the MoRTH introduced the BH Series registration to make interstate movement of vehicles smoother and eliminate the need for re-registration when moving across states. This allows many eligible vehicle owners to select between BH registration and normal registration.

However, this newer system might not always be the right choice. If your goal is to save more on road tax, you must understand the difference between regular and BH series registrations.

What is Regular Vehicle Registration?

Regular vehicle registration is a common, traditional mode of registering vehicles all over India. The car is registered in the state in which it was purchased, and the registration number is associated with that state. If registration is regular, road tax is payable at the moment of registration itself. For private vehicles, the road tax is usually valid for 15 years.

The amount of road tax, however, might vary from state to state where the vehicle is registered. If you relocate to another state, you need to re-register the vehicle there and pay road tax in the new state.   Even if you can seek a return from the prior state, it involves a lot of documentation.

What is BH Registration?

The MoRTH has set up a new registration system called the Bharat Series (BH) to facilitate citizens who frequently shift from one state to another in India. BH number plates are valid throughout the country, and individuals need not re-register the vehicle when they move from one state to another.

The road tax in this system is paid in instalments, starting every two years and then every year after 14 years. 

Road Tax for BH Registration vs Normal Registration: Key Differences

Here are some of the main differences when it comes to paying road tax for BH registration vs regular registration:

How is Road Tax Calculated for BH Registration?

Road tax for BH registration is determined as per guidelines set by the Ministry of Road Transport and Highways.

Depending upon fuel type, other taxes may be imposed.

• For diesel vehicles, there is an additional 2% tax on each vehicle.
• For electric vehicles, there is a 2% discount on current rates.
• All other vehicles may pay tax based on their particular tax schedule.

How is Road Tax Calculated for Normal Registration?

The road tax for regular registration depends on the state charges for tax based on that state's rules. Each state has its own separate system for calculating road taxes. 

For example, if a state charges 10% tax on a vehicle of ₹15 Lakh, the road tax payable would be ₹1.5 Lakh. 

Road tax is generally paid with the registration of the vehicle. However, if the vehicle stays in another state longer than the allowed term, the owner may have to re-register it and pay road taxes in a new state.

Who Can Apply for BH Registration?

The BH Series registration system is available only to specific categories of vehicle owners.  Here is the list of individuals who are eligible:

• Individuals working for the central government
• Individuals working for their state government
• Defense force personnel
• Employees of public sector enterprises
• Employees of private sector enterprises that operate in four or more states or union territories (UTs)

Private-sector employees applying for BH Series registration must provide employer-related documents to confirm their eligibility. They are generally required to submit Form 20 along with supporting documents specified by the registration authority.

Does BH Registration Save More Money on Road Tax?

A lot of individuals believe the BH Series results in lower overall road tax payments. It might be true in some circumstances. However, the main advantage of BH registration is not always a lesser tax burden. It offers more flexibility and spread-out tax payments.

For example, with normal registration, a car owner generally has to pay the applicable road tax during registration. However, in BH registration, road tax is payable in instalments.

This approach can help with cash flow and decrease the financial stress of purchasing a vehicle. Therefore, BH registration does not necessarily lead to lower overall road tax. The key advantage is the ability to spread the tax payments over time and the ease of country-wide validity.

Also Read :- BH vs Normal Registration: Which Saves You More on Road Tax

Benefits of BH Registration Over Regular Vehicle Registration

The BH series offers eligible vehicles advantages over regular registration. These advantages include:

• Lower Tax Liability upfront: The entire amount of road tax does not need to be paid upfront.
• No Re-registration Required: Your vehicle is valid throughout the country, which eliminates the need to re-register your vehicle in the new state.
• More Convenient: The addition of a single registration process helps citizens who travel between different states frequently to obtain and maintain vehicle registration easily.
• Reduced Administrative Work: Many of the state-specific vehicle registration processes are eliminated when you use the Bharat Series.

When Should You Choose Normal Registration?

In many cases, normal vehicle registration remains a viable option for many vehicle owners. You should opt for normal registration if:

• You intend to stay in the state for several years.
• You want to pay the road tax all at once.
• You do not qualify for Bharat Series vehicle registration.

To Conclude

Deciding between BH registration and normal vehicle registration mainly depends on your mobility needs and eligibility. The BH Series provides more convenience for those who travel across the country frequently. On the other hand, traditional registration is often more appropriate for individuals who plan on living in the same state for several years. Before deciding on a registration type, examine your job status, eligibility and chances of shifting in the future.

Read Also: Buying a Used Car: Everything You Need to Know

FAQs

Can I apply for BH registration online?

Yes, you can typically start the process on the official government website and provide the supporting documentation required for the application process.

Is the BH Series available for used vehicles?

Yes, eligible owners of both new and existing vehicles can apply for BH registration, subject to government regulations and eligibility requirements.

What documents are required for BH registration?

Typically, applicants must provide Form 20 and identification, proof of residence and proof of employment.

Can private sector employees apply for BH registration?

Yes. Employees working in the private sector can avail BH registration, subject to their company having offices in four or more states or Union Territories and submission of required documentation.

Is a BH number plate valid throughout India?

Yes, a BH registration is valid in all states and territories of India. You can use it to travel around the country.