Renting a home agreement, verification, receipts, refund
A tenant’s checklist for a smooth tenancy, with notes for owners. Rules on stamp duty, deposits and verification differ by state, so we point you to the official pages.
Put rent, deposit, notice period, lock-in, maintenance, who pays which bill and the yearly increase in writing, signed by both sides. Stamp duty depends on your state, so buy e-stamp paper or pay online as your state allows. A lease for more than one year, or from year to year, must be registered under the Registration Act, which is why 11-month agreements are common; in Maharashtra, leave and licence agreements can be registered online on the IGR portal.
The Model Tenancy Act, 2021 caps the deposit for a home at two months’ rent, but it applies only in states that have passed a law on its lines, so check your state. Wherever you live, write the deposit amount, refund timing and allowed deductions into the agreement. Pay deposit and rent by bank transfer or UPI so you have proof.
Many cities ask owners to inform the local police about a new tenant, and the owner is usually the one who files it, with the tenant’s ID and photo. Delhi Police offers tenant registration online, and the Home Ministry’s Digital Police portal lets you request tenant verification for many states. Tenants: keep a copy of the acknowledgement, it helps with later address checks.
Take dated photos and a short video of walls, fittings and appliances, and note the electricity and water meter readings. Share them with the owner on message or email so both sides have the same record. This is the easiest way to avoid deposit fights later.
Collect rent receipts for HRA
When: Every month
Time: 5 minutes a month
Ask for a signed receipt every month, or keep bank or UPI records with the agreement. If you claim house rent allowance (HRA), your employer will ask for receipts and often the owner’s PAN for higher rents. Whether HRA saves you tax depends on your tax regime, so check before choosing.
When: Pay within 30 days from the end of the month in which you deduct
Time: 30 minutes online
If it applies: Only if you pay more than ₹50,000 a month
An individual or HUF paying rent above ₹50,000 a month deducts 2% TDS under section 393(1) of the Income-tax Act, 2025. Pay it through Form 141 (Schedule A), which replaced Form 26QC, from your own PAN login on the e-filing portal. Owner note: the TDS shows in your tax credit, so share your correct PAN with the tenant.
Update your Aadhaar address with the rent agreement
When: In the first month
Time: 15 minutes online, up to 30 days to process
Official fee: ₹75 for an address update in the Aadhaar App or at a centresource
UIDAI accepts a registered or unregistered rent, lease or leave and licence agreement as proof of address. Update Aadhaar first, then use it for your bank, voter ID and gas connection. If the agreement is not in your name, an address proof affidavit or the head-of-family route may help.
Give written notice as per your agreement, clear the last bills and note the final meter readings. Walk through the home with the owner, compare with your day-one photos and agree any deductions in writing. Under the Model Tenancy Act the deposit is refunded when the owner takes back vacant possession, after due deductions; elsewhere follow your agreement.
When: If the deposit is not returned or terms are broken
If it applies: Only if something goes wrong
Talk first, and put your demand in writing with dates and amounts. In states that adopted the Model Tenancy Act, disputes go to the Rent Authority and Rent Court; elsewhere, to the rent controller or civil court under your state law. A legal notice for recovery of money is often enough to get a stuck deposit back.
Under the Registration Act, 1908, a lease from year to year or for more than one year must be registered. Many people keep the term under a year to avoid compulsory registration, but stamp duty still applies as per your state. Some states, such as Maharashtra for leave and licence agreements, have their own registration rules.
How much security deposit can the owner ask for?
The Model Tenancy Act caps the deposit for a home at two months’ rent, but it applies only where a state has passed a law on its lines. As of July 2022, the Housing Ministry said Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Assam had revised their tenancy laws. Elsewhere, the deposit is whatever you agree in writing.
Do I need to deduct TDS on my rent?
If you are an individual or HUF paying rent above ₹50,000 a month, yes. You deduct 2% and pay it through Form 141 (Schedule A) on the income tax e-filing portal with your PAN. Form 141 replaced Form 26QC under the Income-tax Act, 2025.
Can I use my rent agreement as address proof for Aadhaar?
Yes. UIDAI’s document list accepts a registered or unregistered rent, lease or leave and licence agreement as proof of address. Upload it on myAadhaar, the Aadhaar App or carry it to an Aadhaar centre.
Sources
Last checked: . Fees and rules change, and many differ by state. Always confirm on the official site before you pay. This is general information, not legal advice.