Steps To Transfer Car Ownership In India

Each country has different procedures for changing a vehicle’s owner. In some countries, this process is more streamlined than in others. Depending on your region, transferring vehicle ownership can be a hassle. There is a multi-step process that involves multiple steps to transfer car ownership in India. Since 2023, India has become the third biggest car market in the world, with over 326 million registered vehicles. In 2023, India also became the largest market for two-wheeled vehicles – a trend that continues in 2024.

But how does the process of transferring vehicle ownership in India work? It depends on whether ownership is being transferred under normal conditions, in case of an owner’s death, or if the vehicle was acquired through a public auction. Whether you are looking to buy or sell a car in India, here are all the documents required. 

Insurance Certificate 

One of the most important documents when transferring vehicle ownership. An insurance certificate acts as proof of insurance. A vehicle that lacks this certificate cannot legally drive on public roads. The owner of the vehicle is also the policyholder of the insurance. Like in most regions, third-party liability (also known as basic insurance) is obligatory for every motor vehicle, registered for use on public roads. Proof of such insurance must be presented in front of the Regional Transport Office (RTO), which can also handle much of the process for you. 

Form 29 

Form 29 is also known as a Notice of transfer of ownership of a motor vehicle. It is the equivalent of an application for vehicle ownership transfer and must be filled by the buyer. You need two copies of Form 29, one of which has to be returned to the transferor (current vehicle owner) with an endorsement of the registering authority. 

Form 30

Form 30 is a confirmation of Form 29 (the buyer’s application for vehicle ownership transfer), in accordance with the Motor Vehicles Act from 1988. This document helps transfer legal liabilities and ownership from seller to buyer. Form 30 must be filled by both the transferor (current owner) and the transferee (future owner/buyer). The document also confirms that the current owner has given the buyer the registration certificate and a the copy of insurance certificate. 

If a vehicle is being transferred in the same state, the transferee has to make an application for the transfer of ownership of a motor vehicle, in Form 30, within 14 days of the transfer.  

If vehicle ownership is being transferred to another state, the transferee has to make an application for ownership transfer, in Form 30, within 45 days of the transfer. 

PAN Number or Form 60 

A PAN Card, also known as Permanent Account Card is a document that features a 10-digit identification number, issued to those who pay taxes in India. The PAN number comprises letters and numbers. Any tax-related information is recorded against an individual’s unique PAN number. Both parties need to present a valid PAN Card when transferring vehicle ownership in India. Those who do not possess a PAN Card have to fill out Form 60. 

PUC Certificate 

PUC Certificate or Certificate of Pollution Under Control is a document confirming that the vehicle (object of ownership transfer) complies with emissions regulations. This is a mandatory document for any vehicle with two, three, four, or more wheels, regardless of fuel type.

The PUC Certificate is issued by all authorized emissions testing centres. If your vehicle features aftermarket modifications like a less-restrictive exhaust or one missing catalytic converter, DPF/PPF/OPF or other emissions-related equipment, your vehicle might not be able to get a PUC certificate. 

No Objection Certificate (NOC) 

A NOC is a document issued by the registering authority, in which said authority has no objection to the details mentioned within the document. The No Objection Certificate serves as proof that your car is no longer hypothecated by the bank. A NOC can also be refused by the registering authority in the case when the vehicle seller has outstanding dues.  

If, for one reason or another, the NOC order has not been received by the respective authorities or no communication has been returned, the transferor has the right to follow up with a declaration, supported by the receipt obtained from the registering authority or a postal acknowledgment, received from the registering authority (if the NOC application has been sent by post). 

Sales Agreement 

Among the documents needed for transferring vehicle ownership in India is the sales agreement. It is the most straightforward document when it comes to buying or selling a car in India. A valid sales agreement should include vital information regarding the conditions of the deal.

These include details about the purchase price, payment terms, warranty (if applicable), and other important clauses. The sales agreement serves to provide clarity and prevent any misunderstandings regarding the process of vehicle ownership transfer, not just in India, but in many other regions of the world.  

Registration Certificate (RC)

Another mandatory document when transferring car ownership in India is the registration certificate. This document is issued by the Regional Transport Office (RTO) and certifies that your vehicle is registered in the government of India. It also serves as proof of the vehicle’s ownership and registration. Essentially, it is the car equivalent of a passport. The seller needs to ensure that the vehicle has a valid registration certificate. In India, you need to renew a vehicle’s registration certificate every five years. It is advisable to do so within 60 days of the expiration date. 

Tax Clearance Certificate 

When transferring vehicle ownership in India, both the transferor and transferee must present a Tax Clearance Certificate. This document is a confirmation from Revenue that all your tax affairs are in order and you don’t have any outstanding debts towards your local tax authorities. If you have unpaid tax liabilities, you are not eligible for a Tax Clearance Certificate and therefore cannot transfer car ownership to the buyer. 

Passport Size Photographs 

You cannot be transferring car ownership in India without passport-size photographs of both parties. This one is pretty self-explanatory. Both parties need to provide passport-size photos to complete the process of transferring car ownership in India. 

Address Proof 

Both the vehicle seller and vehicle buyer need to provide proof of address. There are a variety of documents that can be used as address proof, but most commonly these are government-issued ID cards, including an Aadhaar card, Voter ID card, and a Passport. Other documents that can be used as proof of address are electricity, gas, or telephone bills, as well as bank statements and passbooks (financial books). 

Proof of Date of Birth of Purchaser 

When transferring car ownership in India, the vehicle buyer must present a valid document as proof of date of birth. This can be a Birth Certificate, which is issued by the Registrar of Births and Deaths or the Municipal Corporation. Other documents that can be used as proof of date of birth are a School Leaving Certificate, Government ID: Voter ID, Aadhar Card, Passport, or medical records. Any document that has an individual’s date of birth on it will be applicable. 

Chassis Number (VIN) and Engine Number Pencil Print 

The chassis number (VIN) needs to be identified as part of the vehicle ownership transfer. It is used as a method of identification and when a vehicle is involved in an accident or is stolen. The engine number corresponds to a specific VIN, in which case we have a numbers-matching car/ vehicle. If the engine has been changed, a receipt for the new unit needs to be presented. While the VIN is stamped on numerous locations on the car, the engine serial number can be difficult to reach or identify. There is a very simple process for taking a pencil print of the chassis and engine number of a vehicle, as shown in the video above. 

Vehicle Ownership Transfer Fees By Vehicle Type

We have gathered data from one of the large Insurance Companies, operating in India – Shriram General Insurance – and have compiled a table with the vehicle ownership transfer fees for each vehicle type, regardless of whether the vehicle has been locally-sold or is being imported.

Purchaser’s Undertaking 

The purchaser’s undertaking, also known as Purchaser Affidavit Undertaking, is a document required to be presented by the vehicle purchaser, regardless of whether car ownership is transferred under normal circumstances, upon the owner’s death, or when the car has been acquired through a public auction.

The document serves as a declaration that the vehicle buyer/ transferee has purchased a vehicle from a specific make and model, with a specific vehicle identification number (VIN), from the vehicle seller/ transferor for full payment. It is also a request from the vehicle buyer to accept all liabilities and responsibilities and receive vehicle ownership. 

Transferring Vehicle Ownership On Owner’s Death 

When transferring car ownership or ownership over any vehicle type on the owner’s death. All documentation related to the vehicle is the same as when you are transferring car ownership under normal circumstances. You don’t need to fill out Form 29 and Form 30. Instead, you need all the other aforementioned documents and the following:

1. Form 31 – an application for transfer of ownership in the name of the person nominated for a successor to the possession of the vehicle. This is not a vehicle ownership transfer under normal conditions where both sides are participating in the process, which is why Form 29 and Form 30 are not required by the authorities. Instead, the successor to the vehicle ownership has to fill out Form 31, which is similar to the aforementioned forms. 

2. Verification of the vehicle in Form 20 – Application for registration or temporary registration of a motor vehicle 

3. Death certificate of the registered owner 

4. Declaration by the applicant and all other Legal Heirs of the deceased 

5. Proof of Succession 

6. Signature Identification of Seller 

Transferring ownership of vehicle purchased in public auction 

In this circumstance, all vehicle-related documentation is identical as when car ownership is being transferred under normal conditions. Some of the forms you are required to fill out are different and there are two additional documents to the car ownership transfer process if it is purchased in a public auction. The following documentation is required: 

1. Form 32 – serves the same purpose as Forms 29, 30, and 31. Form 32 is an application for transfer of ownership in case of motor vehicle purchase in a public auction. Form 32 is filled out by the transferee (new vehicle owner).  

2. Certificate or order confirming the sale of the vehicle in his favour, duly signed by the person authorised to conduct the auction 

3. Certified copy of the order of the Government body, which has authorised the public auction