How to Claim Up to 25% Motor Vehicle Tax Concession with Certificate of Deposit (CoD)

Tax Benefits

What is a Certificate of Deposit (CoD)?

A Certificate of Deposit (CoD) is an official digital voucher issued by an authorized Registered Vehicle Scrapping Facility (RVSF) upon the legal handover of an end-of-life vehicle. Generated directly through the central MoRTH Vahan database, the CoD serves as irrefutable proof that your vehicle has been retired in compliance with national environmental laws.

Beyond confirming legal deregistration, the CoD serves as a valuable financial asset, enabling substantial tax concessions when registering your next new car, commercial truck, or two-wheeler.

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Maximum Savings Tip

The CoD is valid for a period of up to 3 years from the date of issuance, giving you ample time to choose and register your next vehicle while securing full tax concessions.

State-Wise Road Tax Concession Slabs

Under the Central Motor Vehicles Rules, state governments have rolled out road tax concessions for buyers who furnish a valid CoD at the time of new car registration:

State / Union Territory	Non-Transport (Private) Rebate	Transport (Commercial) Rebate	Validity Duration
Delhi NCR	Up to 25% Motor Tax Concession	Up to 15% Road Tax Concession	3 Years
Haryana	Up to 25% Motor Tax Concession	Up to 15% Road Tax Concession	3 Years
Uttar Pradesh	Up to 25% Motor Tax Concession	Up to 15% Road Tax Concession	3 Years
Punjab	Up to 25% Motor Tax Concession	Up to 15% Road Tax Concession	3 Years
Rajasthan	Up to 25% Motor Tax Concession	Up to 15% Road Tax Concession	3 Years

INSTANT SCRAP QUOTE

Want to Estimate Your CoD Road Tax Savings?

Talk to CarCrush24 specialists to calculate your exact scrap value and road tax discount.

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Step-by-Step Redemption Process

Redeeming your CoD at your local automobile dealership is completely digitized and straightforward:

✓Step 1: Scrap your end-of-life vehicle with CarCrush24 to generate your authenticated digital CoD voucher on Parivahan.
✓Step 2: When purchasing your new car, present your digital CoD number and OTP verification to the authorized car dealer.
✓Step 3: The dealership enters your CoD reference into the Vahan 4.0 portal during new vehicle registration.
✓Step 4: The system automatically deducts up to 25% from your calculated motor vehicle road tax liability, and registration fee charges are waived.
✓Step 5: Receive your new vehicle registration certificate reflecting the tax concession endorsement.

Did You Know? CoD is Electronically Tradable

If you scrap your old vehicle but do not intend to purchase a new car immediately, your CoD is not wasted. MoRTH rules permit the electronic transfer and trading of Certificates of Deposit on authorized digital platforms.

This means you can legally sell your CoD voucher to other prospective car buyers who want to claim the 25% road-tax discount, unlocking additional liquidity on top of your scrap metal compensation!