2026-10-14
You need a photo ID, an address proof, your PAN card and two or three passport-size photos to buy a new car in India. Taking a loan? Add income proof and bank statements. Your dealer files the registration, but you supply and sign the papers.
One rule changed this year, and many guides still show the old version. Since 1 April 2026, PAN is compulsory when you buy a vehicle above ₹5 lakh. The old Form 60 shortcut is gone. Its replacement, Form 97, can't be used for these purchases.
Here's the whole journey in one table. Save it on your phone before you walk into the showroom.
| Stage | What you hand over | Why it's asked |
| Booking | Photo ID, address proof, PAN, token amount | Dealer KYC and booking receipt |
| Loan (if any) | ID, address proof, PAN, income proof, bank statements, dealer price quote | The lender checks who you are and whether you can repay |
| Insurance | ID, address proof, invoice, photo | The policy is needed for registration |
| Registration (RC) | Form 20, invoice, Form 21, Form 22, insurance, ID, address proof, PAN, Form 34 if financed | The RTO needs proof the car is new, roadworthy and yours |
| Delivery | Invoice, temporary registration, insurance, manuals, warranty card | Your proof of ownership until the RC arrives |
This checklist is one step of the complete guide to buying a new car in India. Paperwork is the step most buyers leave for last. And used cars add transfer forms and a NOC on top of everything here, so when you weigh new car vs used car, count the paperwork time too.
Photo ID and a token amount. That's what most dealers ask for on day one. The full KYC comes when they raise your invoice.
Still, carry the full set: Aadhaar, PAN, one current address proof (electricity bill, passport, voter ID or a registered rent agreement) and a passport-size photo. If the dealer asks for nationality proof, a passport, voter ID or school certificate works.
Why bother this early? The name on your booking form becomes the name on the invoice, the loan, the insurance and the RC. One spelling slip travels all the way down. So write your name exactly as it appears on your PAN, every time.
There's proof this matters. In August 2026, name mismatches between RC and Aadhaar records held up ownership transfers across Maharashtra, even when the difference was tiny. That was for transfers, not new cars. But the logic is the same: systems compare names, and small gaps cause delays.
One more thing. Festive months fill showrooms fast, and the best time of the year to buy a new car in India is also the busiest. Scan your documents before you go so you're never the buyer who has to come back tomorrow.
Settle the big choices before you pay a token. If you're stuck between hatchback vs sedan vs SUV, or manual vs automatic, finish that first. Torn between two similar cars? A simple decision framework for choosing between two similar car models stops you from booking both.
Why the rush to decide? Your invoice, insurance and RC all carry the variant and fuel type. A late switch means redoing them.
A verbal promise won't help you at the RTO or in a dispute. Ask the dealer to put these on the booking form or the proforma invoice:
Dealers and lenders both work from the proforma invoice, so what's written there is what gets billed and financed. The gap between ex-showroom and on-road price is made of road tax, registration and insurance, so an unlisted line is hard to argue about later. If you haggled, the discounts you negotiated must appear on paper too.
Make sure the variant on the paper matches the one you paid for. Features change a lot between base, mid and top trims, and airbags are part of that. Not sure how many you need? Read how many airbags you really need first.
Also ask whether accessories are company-fitted accessories that show on the invoice or dealer add-ons. Aftermarket fitments don't appear on the manufacturer's paperwork, and they can complicate a warranty claim later.
If your car has a waiting period, the delivery date in writing is your best leverage. And mind the clock: your one-month temporary registration starts at purchase, not at booking. So line up your loan sanction and insurance before the car is ready.
Yes, if the car costs more than ₹5 lakh. PAN became compulsory for such purchases under the Income-tax Rules, 2026, which took effect on 1 April 2026. Form 60, the old declaration for people without PAN, was replaced by Form 97. And Form 97 can't stand in for PAN on vehicle purchases above that limit.
Why the change? The new framework pushes high-value deals into PAN-linked reporting, so the tax department sees both ends of the sale. A dealer who receives a Form 97 now has to report it too.
Here's what to do. Carry your PAN card or a clear digital copy. If you don't have one, apply before you book, because a dealer can't complete the sale without it. And check that the name on your PAN matches your other IDs.
The proof is easy to find. Khaitan & Co's April 2026 note on the new PAN rules lists motor vehicles above ₹5 lakh among the deals where PAN is mandatory.
Not the full amount. The tax law doesn't let a seller accept ₹2 lakh or more in cash in one transaction, and the receiver can face a penalty equal to the amount. So pay by bank transfer, cheque, demand draft, card or UPI, and keep every receipt.
Then there's TCS. If your invoice value crosses ₹10 lakh, the dealer must collect 1% tax at source on top. That sits under Section 394 of the Income-tax Act, 2025, which replaced Section 206C(1F) of the old Act.
It isn't a lost cost. TCS shows up in your tax statement (Form 26AS or AIS), and you can claim it as credit when you file your return. But it catches buyers off guard at billing. So ask the dealer to show it as a separate line in your quote.
A lender wants to know three things: who you are, where you live and whether you can repay. Your papers answer those questions.
|
|
Salaried |
Self-employed |
|---|---|---|
|
Identity |
Aadhaar, PAN, passport, driving licence or voter ID |
Same |
|
Address |
Utility bill, Aadhaar, passport or rent agreement |
Same, plus business address proof |
|
Income |
Last 3 months' salary slips, Form 16, ITR for 1 to 2 years |
ITR for 2 to 3 years, audited balance sheet, profit and loss statement |
|
Bank statements |
Last 3 to 6 months (some lenders ask for 12) |
Same |
|
Work proof |
Employee ID or appointment letter |
GST registration and business registration certificate |
You'll also need the filled loan application form, passport photos, signature proof (PAN or passport) and the dealer's proforma invoice. The lender uses that quote to set your loan amount.
Most buyers pay 15 to 20 percent upfront and borrow the rest. There's no fixed rule, though. Work backwards from the on-road number when you set a realistic car buying budget, because that's the figure your lender and your wallet will both meet.
Here's the catch with EMIs. The lowest one isn't always the cheapest loan. A low EMI stretched over a long tenure can cost more overall, so compare the rate, processing fee and tenure together. And check your credit score before you apply. A weak score slows approval.
One last loan term. Your lender's name goes on the RC as hypothecation, signed through Form 34. When you finish repaying, ask for the NOC and Form 35 so the entry is removed. Skip that step and selling the car later gets painful.
Your dealer usually files the registration, but you supply and sign the papers. Under Section 39 of the Motor Vehicles Act, 1988, a vehicle can't run in a public place without registration. That's why the dealer issues a temporary registration number, valid for one month, while the permanent RC is processed.
The RTO asks for these:
The Parivahan Sewa portal, run by the Transport Ministry, carries these forms for new registrations.
Aadhaar deserves a note. Many RTO workflows now authenticate Aadhaar through the VAHAN portal, and Odisha made it mandatory for new registrations in July 2026. So keep your Aadhaar-linked mobile phone with you for the OTP.
As for timing, the registration application is expected within 7 days of delivery, and the temporary number lasts one month. If the RC isn't issued in time, the temporary registration can be extended. Read the dates on your certificate and set a reminder. Your permanent number also comes with a High Security Registration Plate (HSRP), so ask the dealer when it will be fitted.
A 3-year third-party cover is compulsory for a new car. IRDAI made this rule after a Supreme Court order, and it applies to policies sold from 1 September 2018. You can buy a standalone 3-year third-party policy, a bundle of 3-year third-party plus 1-year own damage, or a 3-year full package. Own damage cover is optional by law, but it's the part that pays for your own car.
Keep these ready: photo ID, address proof, PAN, passport-size photo, the invoice and the registration or temporary number.
You don't have to buy from the dealer. No rule forces it, so compare two or three quotes before you pay. And keep one thing identical: the insurance name must match the RC name, because an insurer can reject a claim when the two differ.
Don't drive out until you hold these:
Also check that the chassis and engine numbers on the invoice match the car and the insurance. They'll be copied into your RC, so a typo here follows you for years.
Photograph every page before you leave. When the RC arrives, you can keep a digital copy on DigiLocker or mParivahan, which are legally recognised alongside originals under the IT Act, 2000.
Expect to give the company PAN, GST registration (if applicable), incorporation certificate, company address proof, the signatory's ID and a board resolution or authorisation letter. The car is registered in the company's name. Dealers differ on the exact list, so call ahead.
Typically you'll need a passport, a valid visa or OCI card, PAN and an Indian address proof. Rules vary by dealer and state RTO, so confirm before you pay a token.
The car is registered in the name of whoever books it and takes the loan, even if someone else drives it. If you want your father to own it, book it in his name from day one.
You register at the RTO where you live, so you'll need address proof from that state. Not every dealer handles outstation registration, so ask before you pay a token.
Road tax and registration waivers for EVs differ by state, so ask the dealer to show them in your quote. For CNG, a kit fitted after purchase needs RTO approval and an updated RC. If you haven't picked a fuel yet, start with petrol vs diesel vs CNG vs electric, because the choice changes your paperwork and your running costs.
You can still buy a car. But you can't test drive it or drive it home legally without a licence.
This is an illustrative example, not a named customer. It shows how small paperwork gaps add up.
Neha, a 31-year-old software engineer, booked an SUV priced at ₹11.4 lakh ex-showroom with a ₹25,000 token. She took an ₹8 lakh loan. Her PAN read Neha Rakesh Shah. Her Aadhaar read Neha R Shah.
The dealer used the Aadhaar name on the booking form and the insurance. The lender used the PAN name on the sanction letter. Because the invoice crossed ₹10 lakh, the dealer also collected 1% TCS, which she later claimed as credit.
Then the registration file stalled. The invoice, insurance and loan papers carried two spellings. She needed a corrected invoice and an insurance endorsement. Her RC arrived 11 days later than the dealer had promised, and her temporary registration had only 6 days left.
Here's what she changed. She used her PAN spelling on every form. She asked for a scanned copy of every signed page. And she put the temporary registration expiry date in her phone calendar.
The lesson isn't about Neha. It's about order. The first form you fill sets the name for every form after it.
Photo ID, address proof and PAN for vehicles above ₹5 lakh. Loans add income proof and bank statements.
No. Form 97 replaced Form 60 from 1 April 2026, and PAN is mandatory for vehicles above ₹5 lakh.
Other IDs like a passport or voter ID can prove identity. But RTO workflows increasingly check Aadhaar by OTP, and Odisha made it mandatory in July 2026. Carry it.
Aadhaar, passport, voter ID, electricity or phone bill, ration card, a nationalised bank statement or a registered rent agreement.
No. Income proof is for loans.
Usually the dealer. Confirm it in writing and ask for the application number.
One month, and it can be extended if your permanent registration isn't issued in time.
Yes. Nothing makes dealer insurance compulsory. Compare quotes first.
Apply for a duplicate from the authority that issued it. For an RC, that's your RTO.
Yes, as the original or a digital copy on DigiLocker or mParivahan.
Your booking terms decide. That's why the delivery date and refund clause belong in writing.
Before booking:
If you're taking a loan:
Before delivery:
After delivery:
Checked on 15 October 2026. Rules change, so confirm with your dealer and RTO before you pay.
