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

Planning to buy a vehicle in India? Understanding the road tax structure is key. With BH (Bharat) registration, road tax is paid in biennial instalments, offering flexibility—ideal for frequent movers. In contrast, regular registration requires a one-time payment for up to 15 years, varying by state. This guide breaks down the tax differences and benefits, helping you decide which option suits your needs best.

What is Regular Vehicle Registration?

Regular registration means your vehicle is registered with the RTO of your home state or where it’s purchased. Road tax is paid upfront, typically for 15 years for private cars and 2 years for commercial vehicles.

If you relocate to another state, you must re-register and pay road tax there. Though refunds from the original state are possible, the process is often lengthy and complex. This system suits those who stay put but can be costly and inconvenient for frequent movers.

What is BH Registration?

BH (Bharat) Series registration is a pan-India vehicle registration system introduced to ease interstate mobility. Unlike regular registration tied to a specific state, BH numbers are valid nationwide, eliminating the need for re-registration when relocating.

Key benefit: Road tax is paid in instalments of two years or multiples of two, not upfront for 15 years, making it ideal for professionals who move frequently. It saves both money and hassle, streamlining ownership across state borders.

Read Also: Features and Benefits of Bharat Series (BH) Number Plate

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:

This table makes it simple and easy to understand the road tax for BH registration vs regular registration.

How is Road Tax Calculated for BH Registration?

In BH registration, tax is based on a percentage and depends on the price of the car. Here is how it is calculated:

• Cars costing less than ₹10 Lakh: 8% road tax
• Cars costing between ₹10–20 Lakh: 10% road tax
• Cars costing more than ₹20 Lakh: 12% road tax

Additionally, diesel cars need to pay 2% more than petrol cars, and electric vehicles need to pay 2% less than petrol cars.

In BH registration, instead of paying the total tax as a lump sum over 15 years, you only pay it for two years (or multiples of two). You will have to keep doing this repeatedly until you sell your vehicle. This payment schedule is the main difference between the road tax for BH registration vs regular registration.

How is Road Tax Calculated for Normal Registration?

In normal registration, road tax is paid upfront for 15 years (private vehicles), based on the state’s tax rate. For example, a ₹15 lakh car in a state with 10% tax means a ₹1.5 lakh road tax at purchase.

If you relocate, you must re-register in the new state and repay road tax there. Refunds from the original state are possible but often tedious.

This rigid structure makes BH registration a more flexible option for frequent movers.

Who is Eligible for BH Registration?

Not everyone can apply for a BH number plate or BH registration. Only vehicles owned by these individuals are eligible:

• Central government/ state government/ Public sector undertakings employees
• Defence personnel
• Private sector employees having offices in four or more states/UTs

If you are not from the categories listed below, then you should opt for regular registration.

Read Also: How to Get a BH Number Plate: Eligibility, Registration & Cost Required

Benefits of BH Registration Over Regular Registration

Here are some of the main benefits of opting for BH registration over regular registration:

• Less Upfront Cost: No need to pay enormous amounts of tax in advance.
• All-India Validity: You don't need to re-register your vehicle even if you're shifting from one state to another.
• Easier Transfer of Ownership: You can easily sell and transfer ownership of the vehicle to a person in another state.
• Better for People Who Travel a Lot Between States: BH registration saves your time and money in the long term.

When Should You Opt for Normal Registration?

Though BH registration may seem easy, it's not for everyone. Normal registration will suit you best if you:

• Want to live in a single state in the long run
• Want to pay tax and forget about it
• Are not eligible for BH registration

You should consider your lifestyle, job, and financial plans before making the decision.

Conclusion

Choosing between BH registration and normal registration depends on how often you relocate and your financial preferences. BH registration offers flexibility and staggered tax payments, ideal for frequent movers. Regular registration suits those who prefer a one-time tax payment and plan to stay in one state.

FAQs

Do I end up paying more road tax under BH registration compared to regular registration?

No, the total tax amount is the same. The only difference is that BH registration allows you to pay it in smaller instalments instead of an up-front payment.

Can I convert my normal registration into a BH registration later?

No, once you register under the standard system, it cannot be converted into a BH registration.

What happens to my BH registration if I sell the car to someone who is not eligible?

The new owner can continue with the BH registration until the next renewal; however, after that, the car must be re-registered under the standard system.

What happens to the BH registration road tax if I stop using the car or sell it before 15 years?

As you pay in instalments for BH registration, you can stop paying further road tax once the car is sold or scrapped.

Does BH registration save money if I never move states?

Not really. The total tax remains the same; the benefit lies in flexibility and avoiding re-registration hassles if you relocate.