Queries on Transfer of Ownership, Insurance & Taxes


Thread Starter #1
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Hi guys,
I have never purchased a used vehicle before, And have No experience about the procedure of buying a used vehicle in india. Fortunately TAI is full of threads that provided a lot of information about papers, process and procedure of buying used vehicle and registering it to new owner's name.
But still there are some doubts that need to be cleared before i can start my search for a new vehicle.

1. Can i get Transfer of ownership at any RTO? or do i have to go the the RTO that gave the original RC book to the first owner.
2. How delivery note looks like? Is it just written on piece of paper or some sort of stamp paper?
3. Do i have to provide photocopy of rc paper and insurance to seller? after getting the transfer of ownership
4. how to find if the vehicle was financed (and if EMIs are still being paid)
5. what is sale agreement?
6. I will use the vehicle in the same city as it was registered for 2 years before moving to a different city. Will i have to ask for NOC from RTO at the time of purchase? or do i have to get RTO NOC 2 years after the sale (when i move out of the city)
7. It takes 15 days for RTO to transfer the ownership to buyer. Will i have uninsured vehicle till then? I am still confused about the procedure to get insurance in my name or get new insurance after buying the vehicle. [confused]
8. How can i pay for the vehicle? I don't want to buy using cash for obvious reasons, Can i pay via NEFT? What proof do i have incase something goes wrong? Is the transaction record of the bank in account statement, enough? or do i have to get the seller sign on a stamp paper after making payment via NEFT/RTGS?
9. Do i have to get NOC from RTO even if i intend to use the vehicle in the same state? (different city)
10. Suppose i have to transfer the vehicle to a different state and i will have to pay tax again. Do I have to pay the tax on depreciated value or invoiced value of the vehicle? is it 4.5% for all cars/bikes?
11. If i change the color of the vehicle, do i have to get it insured again/get updated by insurance company? (No repaint, only Changed body panels, which are available from OEM in dealership)
12. I came across the term 'after they change RC book name to your name'. Does that mean i will get new RC book from RTO with my name written on it? What exactly will i get after submitting original RC (seller's name), form 29 and my address proof? (do i have to provide form 28 and form 30 to RTO as well?)
13. I don't have address proof from the same city i will be buying the vehicle from. But State is same. Will it cause any unnecessary hassles?

Sorry for long post but this might help others looking for similar answers.
Any help will be highly appreciated
 
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Akash1886

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Re: Some queries about Transfer of ownership, insurance and taxes

1. Can i get Transfer of ownership at any RTO? or do i have to go the the RTO that gave the original RC book to the first owner.
Ownership transfer is related to the registration number of the car buddy. So for example you buy a HR-26 registered car in U.P then you need to go to U.P RTO for ownership transfer and also get NOC from the Haryana RTO.

2. How delivery note looks like? Is it just written on piece of paper or some sort of stamp paper?
Delivery note is a document that is provided to the new owner having details of the spares and other things present in the car at the time of delivery by old owner. In case of a car that is used by a company employee, the company prepares a formal contract on their letter head as delivery note. If its a case of personal sales-purchase, better would be to use a 10Rs. Non-Judicial Stamp Paper to be purchased in your name by the present seller.

3. Do i have to provide photocopy of rc paper and insurance to seller? after getting the transfer of ownership
Not required. After the ownership transfer, you own the vehicle so no need to give any xerox except the sales deed xerox.

4. how to find if the vehicle was financed (and if EMIs are still being paid)
There would be a mention of financed on the vehicle RC. It is called Hypothication. To know if the car is on loan, please cross check with the bank whose name is mentioned in RC. Also demand for a bank NOC if the loan of vehicle is fully repaid.

5. what is sale agreement?
Its a sales agreement done between 2 parties who get involved in sales and purchase of any product. It highlights the clauses of the deal as agreed upon by both parties. Do read it carefully before signing.

6. I will use the vehicle in the same city as it was registered for 2 years before moving to a different city. Will i have to ask for NOC from RTO at the time of purchase? or do i have to get RTO NOC 2 years after the sale (when i move out of the city)
Better would be to take NOC this time itself because it is a really tedious process to obtain an NOC from RTO if you wish to take the vehicle to other state.

7. It takes 15 days for RTO to transfer the ownership to buyer. Will i have uninsured vehicle till then? I am still confused about the procedure to get insurance in my name or get new insurance after buying the vehicle.
Ask the company which has insured the vehicle in first place. Transfer of insurance is really important. And buying a new policy makes sense if the old policy is about to expire.

8. How can i pay for the vehicle? I don't want to buy using cash for obvious reasons, Can i pay via NEFT? What proof do i have incase something goes wrong? Is the transaction record of the bank in account statement, enough? or do i have to get the seller sign on a stamp paper after making payment via NEFT/RTGS?
Simple is get a DD made favoring the seller with the decided amount. DD can be made either by cash or from balance in your account. Before giving the DD to the seller, take a xerox of the same and keep it for your record.

9. Do i have to get NOC from RTO even if i intend to use the vehicle in the same state? (different city)
Though not really needed if driven in same city but it would be good if you do it so that you'll get to know the history of the vehicle as well in the process.

10. Suppose i have to transfer the vehicle to a different state and i will have to pay tax again. Do I have to pay the tax on depreciated value or invoiced value of the vehicle?
The tax repayment has to be done on Invoice value at time of purchase. I was given an estimate of Rs. 40K for my Optra.

11. If i change the color of the vehicle, do i have to get it insured again/get updated by insurance company? (No repaint, only Changed body panels, which are available from OEM in dealership)
If you change the body color, please inform the RTO. No re-insurance is needed because only the color has changed and not the chassis number. The insurance is issued on basis of Chassis number and make of the car with model year.

12. I came across the term 'after they change RC book name to your name'. Does that mean i will get new RC book from RTO with my name written on it?
Being new owner of the vehicle you'll be given a new RC. Now-days there is this smart card RC coming so the old one will be removed and new one in your name shall be issued with all details.

13. I don't have address proof from the same city i will be buying the vehicle from. But State is same. Will it cause any unnecessary hassles?
If you live in U.P say in Noida and you are buying the car from some other city in U.P say Meerut then you can put the address of Noida there since the state is same. There should not be any hassle as such.

Regards

Akash
 
Thread Starter #3
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Re: Some queries about Transfer of ownership, insurance and taxes

Thanks a lot for your help, I did some more research and developed some more confusions, Can you please help me with these questions again [confused]

I visited UP RTO site Uttar Pradesh Transport Department

and found this:

For transfer of the ownership of Motor vehicle, the following documents are required:

1. Form 29 and 30
2.. Registration certificate.
3. Insurance Certificate
4. N.O.C. of the vehicle, if registered out side U.P.
5. Fees as specified Rule-81.
6. Passport size photograph of Purchaser & seller.
7. Tax clearance certificate.

My questions:

1. What is tax clearance certificate and how can i obtain it?

2. Some members said i have to get 2-2 copies of form 29 and 30. Does this mean i have to get two copies of form 29 and 30 signed by seller ? or does that mean i have to make 2 xerox copies of the original form 29 and 30 and submit these two xerox copies to RTO (keeping original myself)?

3. I am a student. I have a PAN card but i don't have a job so i don't know anything about incometax and use of PAN number. If i transfer more than 50k, will this create any problems with income tax? 50k or more requires PAN number.

4. My permanent address (the one which will be mentioned in RC and other documents) is different from my current address (its in same city). Can i get RC paper delivered to me in my new address?

5. Do i have to have witnesses for the deal or transfer of ownership procedure

6. What/Who is financer (in form 29 and 30) (check attached pic)

7. What does "I enclose the 'NOC' issued by registering authority means? what kind of NOC
(is it form 28? but form 28 noc deals with hire-purchase/lease/hypothecation)
or is it form 35 or something else? totally confused by the term NOC here.
(check attached pic)

8. Apart from new RC with my name on it, What documents will i get from RTO after applying for Transfer of ownership?

9. Will these documents be delivered to me via post? or will i have to go to RTO office to collect them?

10. Where do i have to get vehicle chassis imprint? i mean on what kind of form? (is it required? no such thing is mentioned in RTO website)

11. What is "Notarized Copy"? And who is notary officer (sorry for n00b query)

12. From where can i get PUC/emission certificate? (again, requirement of this certificate is not mentioned in RTO site)

13. DRC (duplicate RC), What does that mean and why was it written to 'look for DRC in RC book' in some forums and sites. Does this mean the vehicle is already registered to 2nd (3rd or more) owner?

 

Akash1886

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Re: Some queries about Transfer of ownership, insurance and taxes

My questions:

1. What is tax clearance certificate and how can i obtain it?
Road Tax Clearance Certificate.

2. Some members said i have to get 2-2 copies of form 29 and 30. Does this mean i have to get two copies of form 29 and 30 signed by seller ? or does that mean i have to make 2 xerox copies of the original form 29 and 30 and submit these two xerox copies to RTO (keeping original myself)?
By 2-2 sets it means, original goes to RTO, one Xerox with you and other Xerox with the seller.

3. I am a student. I have a PAN card but i don't have a job so i don't know anything about incometax and use of PAN number. If i transfer more than 50k, will this create any problems with income tax? 50k or more requires PAN number.
As transaction will be more than 50K, so you will need to file ITR i.e Income Tax Return as the car is seen as a Asset/Income.

4. My permanent address (the one which will be mentioned in RC and other documents) is different from my current address (its in same city). Can i get RC paper delivered to me in my new address?
RC will be delivered to the address that is mentioned on it only. They will not send it to other address.

5. Do i have to have witnesses for the deal or transfer of ownership procedure
Yes

6. What/Who is financer (in form 29 and 30) (check attached pic)
In-case the car purchase is being financed by a third party so he/she/it shall be mentioned there.

7. What does "I enclose the 'NOC' issued by registering authority means? what kind of NOC
See, this is the NOC which is obtained from RTO of the primary state to which the vehicle has been registered first.

8. Apart from new RC with my name on it, What documents will i get from RTO after applying for Transfer of ownership?
The RTO gives you the new RC. Also while being witness to the sales deed, you'll get the sales deed too.

9. Will these documents be delivered to me via post? or will i have to go to RTO office to collect them?
Sales Deed is provided there itself whereas the RC comes in a week's time. Keep in touch with RTO/agent.

10. Where do i have to get vehicle chassis imprint? i mean on what kind of form? (is it required? no such thing is mentioned in RTO website)
That is not necessary.

11. What is "Notarized Copy"? And who is notary officer (sorry for n00b query)
Notary officer is the person who prepares the deeds/agreements on a valid stamp paper.

12. From where can i get PUC/emission certificate?
PUC mean Pollution Under Control. You may get it from any petrol pump.

13. DRC (duplicate RC), What does that mean and why was it written to 'look for DRC in RC book'
It means, when you submit the old RC to be transferred in your name then earlier what use to happen is that the old one usually was attached to new one so that it was verified that vehicle was previously register in other state/name. But now there is this smart card RC, in this case, after proper submission of all documents, you'll be issued new one.

Regards

Akash
 
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Thread Starter #5
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One last question, If i buy a UP 53 registered vehicle in lucknow (UP 32),

During ownership transfer process, Do i have to take the documents to UP 53 RTO ? or to UP 32 RTO ?
 
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Transfer of Bike

Hi,

I am transferring my bike to someone in Delhi (it is the same place where I have purchased). Buyer submit all the required documents to RTO office (Sarai). After 30 days when buyer visit RTO office, RTO officer told him that Seller current signature is not matching with system signature and so he could not issue new RC and asking Seller to be here with valid ID proof.

As I am currently not in India and I am not sure about the signature I made 10 yrs ago (Bike purchased in 2004).
So please help me to get to know what are other options we can follow to the transfer of bike.
 
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Hi All,

I am selling my Swift Dzire vehicle in Hyderabad and the buyer has given me an advance for the same.Now i have received a NOC from the bank regarding the clearance of loan(may be form 69 not sure) .Now i want to understand if the so called doc given by bank is enough to conclude the sale of my car to the buyer or what are the documents i need to provide at the time of the sale.
 

Akash1886

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I am selling my Swift Dzire vehicle in Hyderabad and the buyer has given me an advance for the same.Now i have received a NOC from the bank regarding the clearance of loan(may be form 69 not sure) .Now i want to understand if the so called doc given by bank is enough to conclude the sale of my car to the buyer or what are the documents i need to provide at the time of the sale.
You need to prepare a proper sales deed on the stamp paper. Then insurance needs to be transferred to the new owner's name so over there too the Xerox of sales deed is needed. Transfer of the RC has to be done. Once you are done with all documents, please ensure to keep the original sales deed with you and provide a Xerox to the new owner.

Regards

Akash
 
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I have a query regarding ownership transfers .... while applying Clearance Certificate, RTO will check for any traffic violations and issue CC.
My question would be: will the RTO check for any other offenses like stolen cars, accidents, cars used for illegal activities. ex: someone trying to sell a stolen car which is used for any illegal activity and case is pending in another city police station .. will the RTOs have those details from other police stations ?
someone please help to clarify[confused]
 
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@swiftian yes sir they would when a car is involved in robbery or illegal issues and it gets caught. the vehicle is handed over to the court which issues order to R.T.O to find the owner. In case a crime is happened and the driver driving the car is not captured then according to law the Registered owner of the car automatically becomes the culprit. so a warrant would be issued to arrest the owner. only if the owner has proper documentation stating that the car was rented leased or stolen report being filed only then he is saved from getting behing bars. such cars are returned to the owner only when the driver is captured in other words the culprit is caught.

Hope this clears your doubt if not please let us know what kind of doubts you have.

when a Clearance certificate is issues from any R.T.O it means that there are no cases registered on the car bearing that registration no., Also it means it doesnt have any pending dues or taxes that it needs to pay to the R.T.O authority and its ready to be transfered onto the said persons name in the said R.T.O.
 
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@incarnation: thank you for detailed reply

one of my friend is looking to buy a used Nissan Sunny in Bangalore and owner seems he has not given proper reply for my friends questions ... owner replied he was in IT and not in job now and doing some real estate business as well, no clear reply.

Owner story: Car is 2015 Apr registered under company lease plan, then its transferred to employee on Nov 2015 itself .. my friend spoke to registered owners husband. my friend has saw the car in-person(no issues with car)... owner's husband did not gave proper reply when asked about transfer in Nov 2015 on his wife's name.

my friends concern: not sure why it was transferred in couple of months time.

when registered under company lease plans , in RTO records company name will come as owner, but in this case a different lady name was in RTO database ..is it possible ?
 
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Swiftian,If your friend is buying the car,ask for an NOC from the RTO to your friends name. In Bangalore,this is given to clear the said questions.
 
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@incarnation: thank you for detailed reply

one of my friend is looking to buy a used Nissan Sunny in Bangalore and owner seems he has not given proper reply for my friends questions ... owner replied he was in IT and not in job now and doing some real estate business as well, no clear reply.

Owner story: Car is 2015 Apr registered under company lease plan, then its transferred to employee on Nov 2015 itself .. my friend spoke to registered owners husband. my friend has saw the car in-person(no issues with car)... owner's husband did not gave proper reply when asked about transfer in Nov 2015 on his wife's name.

my friends concern: not sure why it was transferred in couple of months time.

when registered under company lease plans , in RTO records company name will come as owner, but in this case a different lady name was in RTO database ..is it possible ?
Also Check the RC Book whether the Lease agreement has been cleared or not. Whenever a car has been purchased under Hypothecation/Hire-purchase or Lease agreement same will be shown in the RC. Once the dues are cleared and released from Hypothecation etc then same should be endorsed in the RC by the RTO.!
 
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if the R.C is a card R.C. then you will have to pay 18/- INR to R.T.O and get a B- Extract form ( R.C perticulars) , to get the R.C perticulars or B- Extract form the only info you need to have is the car Reg. No. this form would in details show you when it was originally registered when the ownership was changed. how much tax was paid at what date with the challan no of the taxes paid as well as it would have details of Hypothecation it would have a start date and an end date under hypothecation if there is no end date that means that the Car is still under hypothecation. however with all these info.

the R.T.O in which it is registered will not issue cleareance certificate on to buyers name residing in any other R.T.O unless and until the papers arent clear, so do not worrry much on this.

the only thing you need to do is before purchasing the car if you like the car. pay some advance not much say 5-6k and ask the owner to get the C.C.( clearence Certificate) in your friends name , and if you get that and after you get that, only then pay the full amount.

N.O.C is applicable only if you are taking the vehicle of one state to another state.
 
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