New Rent Agreement 2025 : The number of people living on rent and those giving their property on rent is increasing rapidly in India. As a result, disputes related to rental properties have also grown. To address this issue, the government has introduced the New Rent Agreement 2025. Under the new system, tenant registration will become easier, house owners cannot evict tenants without proper notice, and tenants must pay two months of advance rent. Clear rules have also been made for renting commercial properties. These rules are based on the Model Tenancy Act (MTA) and recent budget provisions, which aim to create a structured and transparent rental system.
New Rent Agreement 2025 : Mandatory Registration of Rent Agreements
Under the new rules, every rent agreement must be registered within two months of signing. This registration can be done in two ways:
- Through the state’s online property registration website
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By visiting the nearest registrar office
If an agreement is not registered within the stipulated time, a penalty of ₹5,000 may be imposed.
New Rent Agreement 2025 : Major Changes for Tenants
1. Mandatory Registration
Without proper registration, the rent agreement will not be considered valid.
2. Limit on Security Deposit
- For residential properties: Maximum of two months’ rent
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For commercial properties: Up to six months’ rent
3. Fixed Rules for Rent Increase
Landlords cannot increase rent arbitrarily. Prior notice must be given as per guidelines.
4. Protection From Sudden Eviction
Tenants cannot be asked to vacate the house without completing the proper legal process.
5. Faster Dispute Resolution
Special Rent Courts and Tribunals have been set up to resolve disputes within 60 days.
Benefits for Landlords
1. Higher TDS Limit
The TDS limit has been increased from ₹2.4 lakh to ₹6 lakh per year, providing significant relief to property owners.
2. Simplified Tax Reporting
Rental income will now be counted directly under Income from Housing Property, making tax filing easier.
3. Faster Action if Rent Is Not Paid
If rent is unpaid for three months or more, the matter can be taken to the Rent Tribunal for quick resolution.
4. Benefits for Repairs and Maintenance
If landlords spend on repairs or keep the rent low, they may receive tax benefits under government schemes.
How to Register a Rent Agreement
- Visit your state’s property registration website.
- Upload ID proofs of both parties.
- Fill in rent details and all terms & conditions.
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E-sign the agreement and submit it online.