# Rent Agreement Drafting

> A residential rent agreement records the rent, deposit, period, maintenance, lock-in and notice terms between landlord and tenant. Leases for a year or more must be registered under the Registration Act, which is why many are made for 11 months; in Maharashtra, leave-and-licence agreements must be registered whatever the period. Stamp duty is payable as per state law, and tenants paying over ₹50,000 a month must deduct 2% TDS.

Practice: Legal Documents & Agreements — https://www.industax.com/services/legal-documents/

An unregistered agreement for 12 months or more can't be relied on as evidence of the lease terms, and an unstamped one can't be admitted until duty and penalty are paid. For HRA claims, a stamped agreement with the landlord's PAN (if rent exceeds ₹1 lakh a year) is the strongest proof.

We draft for your state's rules, include escalation, lock-in, deposit refund timelines and maintenance responsibilities, and guide e-stamping or registration.

## Key facts

| Item | Detail |
| --- | --- |
| Registration | Required for leases of 1 year or more; leave and licence always in Maharashtra |
| Stamp duty | As per state law, often on rent and deposit |
| TDS by tenant | 2% if rent exceeds ₹50,000 a month |
| Landlord PAN | Needed for HRA if rent exceeds ₹1 lakh a year |

## Who needs this

- Landlords and tenants
- Employees claiming HRA
- NRI landlords letting out property in India

## What's included

- Agreement drafting
- State stamp duty and registration guidance
- TDS and HRA notes
- Revision round

## Documents

- Landlord and tenant KYC
- Property address and ownership proof
- Rent, deposit and term details

## Process

1. **Terms** — Rent, deposit and conditions agreed.
2. **Draft** — Agreement prepared for your state.
3. **Execute** — E-stamped and registered where required.

## FAQs

### Why are rent agreements made for 11 months?

Because leases of a year or more must be registered, which costs more and needs both parties at the sub-registrar. An 11-month agreement avoids compulsory registration in most states, though it still needs stamp duty.

### What TDS applies when a tenant pays an NRI landlord?

TDS under the non-resident provisions — 30% plus surcharge and cess on rent (subject to treaty relief) — regardless of the amount, and the tenant needs a TAN.

### Can the landlord keep the whole deposit?

Only to the extent the agreement allows deductions for unpaid rent or damage. Clear deposit-refund timelines and deduction rules in the agreement prevent disputes.

## Official sources

- India Code — central Acts: https://www.indiacode.nic.in/

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Canonical page: https://www.industax.com/services/legal-documents/rent-agreement-drafting
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.