As per Article 177 of the Motor Vehicles Act, paying road tax is a requirement for all owners of vehicles (both four-wheelers and two-wheelers) within India. Road tax, also known as the tax on lifetime, is collected when buying or registering a brand-new vehicle. But, states may have different ways to pay for road tax. It is paid each quarter, annually, or all at once. Road tax is paid online or in person through the Regional Transport Office (RTO). If a motorist is not paying taxes on the road, he/he is required to pay a penalty of Rs 500. In some instances, the vehicle’s papers (copy from RC book) could be confiscated if you drive in a vehicle not paying road Tax.