A rent agreement in India is a written contract between a landlord and a tenant, printed on stamp paper (or e-stamped) of the value your state prescribes. Most are made for 11 months. That number isn’t a legal requirement for renting. It’s a way around compulsory registration, which kicks in once a lease runs longer than a year.
There’s one big exception: in Maharashtra, every leave and licence agreement has to be registered, whatever its length. This guide is part of our complete guide to renting a house in India. Below is how the rules work, what stamp duty looks like, what the agreement should contain, and the steps to get one made properly.
Why most rent agreements are for 11 months
Section 17 of the Registration Act, 1908 lists the documents that must be registered at the sub-registrar’s office. Leases of immovable property “from year to year, or for any term exceeding one year” are on that list.
So an agreement for 12 months or more has to be registered, which means paying registration fees on top of stamp duty and visiting the sub-registrar (or using your state’s e-registration system). An 11-month agreement stays under the threshold. Landlords also like the short term because it lets them revise rent at each renewal.
What the 11-month route doesn’t do is skip stamp duty. Your agreement still needs to be on stamp paper of the right value, or a court or office can impound it if you ever need to produce it as evidence.
Registered, notarised or just signed: what’s the difference?
People mix these up all the time, so here’s the practical difference:
| Type | What it means | Legal strength |
|---|---|---|
| Signed on stamp paper only | Both parties and two witnesses sign | Valid contract for terms up to 11 months, if properly stamped |
| Notarised | A notary attests the signatures | Same as above; the notary confirms who signed, not the terms |
| Registered | Recorded at the sub-registrar with photos, thumbprints and fees | Strongest proof; compulsory for leases over one year (and for all leave and licence agreements in Maharashtra) |
Notarisation is common because it’s quick and cheap, but it doesn’t replace registration where registration is compulsory. Under Section 49 of the same Act, a document that should have been registered but wasn’t can’t be used as evidence of the transaction it records. For a long lease, that’s a serious weakness if a dispute ever reaches court.
How much stamp duty do you pay on a rent agreement?
Stamp duty is a state subject, so the amount depends entirely on where the property is. The formula usually depends on the length of the lease, the rent, and any deposit or advance.
Here’s the official schedule for one state as an example. The Uttarakhand Stamp and Registration Department lists these rates for leases:
| Lease term | Stamp duty | Registration fee |
|---|---|---|
| Up to 1 year | 2% of the total rent for the term | 2% of total rent, maximum ₹25,000 |
| Over 1 year, up to 5 years | 2% of three times the average annual rent | 2% of average annual rent, maximum ₹25,000 |
| Over 5 years, up to 10 years | 2% of four times the average annual rent | 2% of average annual rent, maximum ₹25,000 |
| Over 10 years, up to 20 years | 2% of five times the average annual rent | 2% of average annual rent, maximum ₹25,000 |
The same schedule has a special entry for renting a building or flat for up to five years: 2% of the total rent for the whole term (plus any advance), with a minimum of ₹100 and a maximum of ₹10,000. Any premium or advance paid for a lease of up to 30 years also attracts 2%.
A quick worked example using that flat entry: an 11-month agreement at ₹15,000 a month has a total rent of ₹1,65,000, so stamp duty at 2% comes to ₹3,300.
Other states use different formulas. Before you buy stamp paper, check your state’s stamp and registration department website, or the e-stamping option it links to. Most departments publish the current schedule.
Maharashtra: registration is compulsory for every agreement
Maharashtra handles this differently. Under Section 55 of the Maharashtra Rent Control Act, 1999, every tenancy or leave and licence agreement must be in writing and registered, even for 11 months. The Act puts the responsibility for registration on the landlord and provides a penalty for skipping it. If an unregistered agreement ends up in a dispute, the tenant’s version of the terms is presumed correct unless the landlord proves otherwise.
The good news is that you don’t have to queue at an office. The IGR Maharashtra e-registration service, built by NIC, lets you prepare the agreement, sign it electronically and receive the registered document online.
What a rent agreement should include
A good agreement leaves nothing important to memory. Use this as your checklist when drafting:
| Clause | What it should say |
|---|---|
| Parties | Full names, addresses and ID details of the landlord and every adult tenant. |
| Property | Complete address, flat number, floor, and whether parking or storage is included. |
| Term | Start date, end date and the renewal process. |
| Rent | Amount, due date, payment method and late fee, if any. |
| Rent increase | The percentage or amount agreed at renewal, in writing. |
| Security deposit | Amount, and when and how it will be refunded, including what can be deducted. |
| Maintenance and bills | Who pays society maintenance, electricity, water, gas and internet. |
| Repairs | Which repairs the tenant handles and which the landlord handles. |
| Lock-in period | If either side can’t leave for the first few months. |
| Notice period | Usually one or two months, for both sides. |
| Use of the property | Residential only, number of occupants, pets, subletting. |
| Inventory | A list of fittings and furniture (fans, geysers, ACs, beds) with their condition, ideally with photos. |
| Landlord’s entry | How much notice the landlord gives before visiting. |
| Signatures | Landlord, tenants and two witnesses on every page. |
The inventory list is the clause people skip and later regret. It’s what decides whether a deduction from the deposit is fair when you move out.
Rent agreement format: a simple sample
There’s no single official rent agreement format for the whole country. Your state’s registration department may publish one, and Maharashtra’s Department of Registration and Stamps runs its own leave and licence format for online registration. For an ordinary 11-month agreement, this order of clauses is a sound starting point:
- Title and date: “Rent Agreement”, the date and the place where it’s signed.
- Parties: “This agreement is made between [owner’s name, age, address] (the Landlord) and [tenant’s name, age, permanent address] (the Tenant).”
- Property: “The Landlord agrees to let the residential flat at [full address] to the Tenant, with the fittings listed in the Schedule.”
- Term: “For a period of 11 months, from [start date] to [end date], renewable by mutual written consent.”
- Rent and payment: “Monthly rent of ₹[amount], payable by the [day] of each month by bank transfer or UPI to [account].”
- Security deposit: “₹[amount], paid by [mode] on [date], refundable within [number] days of vacating, after lawful deductions for unpaid dues or damage beyond normal wear.”
- Bills and maintenance: who pays electricity, water, gas, internet and society maintenance.
- Rent increase: “[percentage] on renewal.”
- Use and occupants: “For residential use by the Tenant and [names or number of occupants] only. No subletting.”
- Repairs: minor repairs by the Tenant, structural and major repairs by the Landlord.
- Lock-in and notice: “Lock-in of [months]. Either party may end the agreement with [one or two] months’ written notice.”
- Landlord’s visits: with at least 24 hours’ notice, except in emergencies.
- Schedule of fittings: a list of fans, lights, geysers, ACs and furniture, with their condition.
- Signatures: Landlord, Tenant and two witnesses, with names and addresses, on every page.
Fill in the brackets, print it on stamp paper or e-stamp paper of the right value, and read every clause before you sign. If the rent is high, the term is long or the property is commercial, get a lawyer to review it.
Can you make a rent agreement online?
Partly. In many states you can buy e-stamp paper online and pay the stamp duty digitally, then print and sign the agreement. Full online registration, where the parties don’t visit an office, is available in some states. Maharashtra’s leave and licence registration through the IGR Maharashtra portal is the best-known example. Elsewhere, registration still means a visit to the sub-registrar’s office, so check your state’s registration department website before you start.
The Model Tenancy Act: what it changes, and where
The Union Cabinet approved the Model Tenancy Act on 2 June 2021 and sent it to the states and Union Territories to adopt, either through new laws or by amending their existing rent laws. It’s a model, not a law that applies everywhere automatically. Housing is a state subject, so it only takes effect in states that adopt it.
When the Ministry of Housing and Urban Affairs released the draft, its press note set out the main ideas:
- No property can be rented without a written agreement.
- Landlord and tenant inform a Rent Authority about the agreement within two months, and get a unique identification number.
- The security deposit for residential property is capped at two months’ rent.
- Disputes go to a Rent Court and Rent Tribunal instead of the regular civil courts.
- It applies to new tenancies, not existing ones.
If your state has adopted it, these rules matter a lot, especially the deposit cap in cities where landlords commonly ask for much more. Check your state’s housing or revenue department for its current tenancy law.
Step by step: getting a rent agreement made
- Agree on the terms in writing first: rent, deposit, notice, lock-in and who pays what.
- Draft the agreement with all the clauses above. Your state’s e-registration portal may offer a format.
- Buy stamp paper or an e-stamp of the correct value for your state. The tenant usually pays, unless you agree otherwise.
- Print and sign. The landlord, all tenants and two witnesses sign every page.
- Notarise or register. Register it if the term is over 11 months, or if you’re in Maharashtra. Otherwise, notarisation is optional but useful.
- Complete tenant police verification. Many cities require landlords to submit tenant details to the local police. In Delhi, for example, the Delhi Police provides the tenant verification form. Your state police website will have its own process.
- Keep copies. Both sides keep a signed original or certified copy, plus photos of the property on move-in day.
Tax points tenants and landlords should know
Rent paid by an individual above ₹50,000 a month brings in a TDS obligation for the tenant, even if the tenant isn’t running a business. The Income Tax Department’s page on TDS on rent explains who has to deduct it, the current rate and the forms to file.
Salaried tenants claiming house rent allowance (HRA) will need rent receipts, and employers often ask for the landlord’s PAN for larger rent amounts. Put the landlord’s PAN in the agreement if they’re willing to share it. It saves a scramble at tax time.
Frequently asked questions
Is an 11-month rent agreement legally valid?
Yes. It’s a valid contract between landlord and tenant, as long as it’s on stamp paper of the right value and properly signed. It doesn’t need registration because it’s under one year, except in Maharashtra, where every agreement must be registered.
Who pays for the stamp paper and registration?
There’s no fixed rule in most states. By custom, the tenant usually pays, but you can agree to split it. Write whatever you agree into the agreement.
Can I make a rent agreement online?
Many states offer e-stamping, and some, like Maharashtra, offer full online registration. You can draft and pay online in most places, but signatures and registration follow your state’s process.
How much security deposit can a landlord ask for?
Unless your state has adopted the Model Tenancy Act or has its own cap, the deposit is whatever both sides agree. Under the Model Tenancy Act, the cap for residential property is two months’ rent.
Sources
- India Code: The Registration Act, 1908
- Stamp and Registration Department, Uttarakhand: Stamp duty and registration fee schedule
- Government of Maharashtra: The Maharashtra Rent Control Act, 1999
- IGR Maharashtra: e-Registration
- PIB: Cabinet approves Model Tenancy Act (2 June 2021)
- PIB: Model Tenancy Act draft released by MoHUA
- Delhi Police: Downloadable forms including tenant verification
- Income Tax Department: TDS on rent by certain individuals or HUF
