Your Vehicle is 15 Years Old: Should You Renew RC (Green Tax) or Scrap It? (2026 Financial Breakdown)

Published by Adv. Rajesh Verma on 21 October 2026

1. The Real Cost of Keeping (RC Renewal + Green Tax + ATS Test)

Under Rule 81 of CMVR and the National Scrappage Policy:

  • Statutory RC Renewal Fee (Form 25): ₹5,000 (Hiked from ₹600 for cars
    gt;15$ years).
  • Green Tax / Environmental Clean Air Cess: ₹2,000 to ₹6,000 depending on the State.
  • Mandatory ATS Computerized Test: ₹1,000 (Strict pass criteria for emission, suspension, brake balance, and headlights).
  • Smart Card & Postal Fee: ₹450.
  • Total Expenditure to Keep Car for 5 Years: ~₹8,500 to ₹14,000.

  • 2. Financial Benefits of Scrapping (COD, 25% Tax Waiver & OEM Discount)

    Scrapping your end-of-life vehicle at a Registered Vehicle Scrapping Facility (RVSF) unlocks 4 massive statutory benefits:

    1. Scrap Metal Payout: 4% to 6% of the original ex-showroom price (Cash payment: ₹30,000–₹60,000).

    2. 25% Road Tax Concession on New Car: Saves ₹25,000 to ₹1,00,000 on new vehicle road tax upon producing the digital Certificate of Deposit (COD).

    3. 5% Mandatory OEM Discount: Major auto manufacturers (Maruti, Tata, Hyundai, Mahindra, Toyota) provide a flat 5% invoice discount against a COD.

    4. Complete Registration Fee Waiver: Zero RTO registration fees on the new vehicle.


    3. Step-by-Step Scrapping at Registered RVSF Centres

  • Log onto vahan.parivahan.gov.in/scrappage.
  • Select a Government-Authorized Registered Vehicle Scrapping Facility (RVSF).
  • Hand over vehicle and physical RC book.
  • RVSF verifies chassis VIN and issues the instant digital Certificate of Deposit (COD) and Certificate of Vehicle Scrappage (CVS).
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    Frequently Asked Questions

    How much does it cost to renew the RC of a 15-year-old private petrol car in India?

    RC renewal fee (₹5,000) + Green Tax (₹2,000–₹6,000 state-dependent) + Automated Testing Station fee (₹1,000) + Smart Card fee (₹200) = Total ~₹8,200 to ₹12,200.

    What is a Certificate of Deposit (COD) in the Vehicle Scrappage Policy?

    A Certificate of Deposit (COD) is an official government-issued digital certificate given when you scrap a vehicle at an authorized RVSF facility, entitling you to a 25% road tax concession and 5% OEM discount on a new vehicle.


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