This research aims in providing an efficient way to detect, control and manage the traffic and the traffic problems at the lanes without the involvement of any traffic police or the traffic management staff. This research finishes the human involvement completely. This system also provides the congestion control mechanism. This research overcomes drawbacks of other techniques developed earlier like Inductive Loop Detection, Video Data Analysis etc. The present intelligent system will consist of the RFID readers placed at the start of the lane and the end of the lane that is near the traffic lights. The readers placed at the end of the lane will measure the traffic at the end of the lane and the readers at the start of the lane will measure the upcoming traffic and they will also detect the emergency vehicles, (if any), plus they will also contribute in the congestion control mechanism. The traffic lights will work on priority basis dynamically. This research believes in saving the time of the vehicles at the cross roads where the traffic lights have been installed.