According to section 177 of the Motor Vehicles Act, paying road tax is mandatory for vehicle owners (both two and four-wheelers) in India. Road tax, also known Life time tax, is collected at the time of purchasing or registering a new vehicle. However, different states have different methods to pay for road tax; it is either paid quarterly, annually or all at once. Road taxes are to be paid either online or offline at the Regional Transport Office (RTO). If a vehicle owner fails to pay road tax, he or she has to pay a fine of ₹500. In some cases, your vehicle papers (copy of RC book) might get seized if you are caught driving a vehicle without paying Road Tax.