As of July 1, 2025, all rental agreements will have to go according to a form prescribed by the government. This gives clarity in rates of rent, security deposits and maintenance. The agreements between the two parties have to be registered online within 60 days of legality and also increasing transparency.
Digital Stamping Mandate
New regulations require the stamp of rental contracts online through the designated websites. Failure to pay a 5 000 rupee fine is imposed on landlords. Such a transition mandates by Digital India eliminates cases of forgery, as agreements can be tied to Aadhaar/PAN, thereby making it legally enforceable.
Security Deposit Limits
Landlords are now allowed to charge only two month security deposit. With the monthly rent of a 15,000, the amount of deposit should not be more than 30,000. This cap lessens tenants financial strain and equalizes how deposits are done.
Rent Increase Restrictions
The increase of rentals is restricted at 5% in a year unless otherwise stated in the contract. Landlords are required to give a 3 months notice prior to increase. A hike of up to 1000 rupees will be charged even with a 20,000 rupee rent and the tenants will not get infected by sudden increases.
Enhanced Eviction Protections
Renters are better guarded against arbitrary eviction To evict tenants landlords have to cite acceptable justifications such as rent delinquencies or tenants using the property personally, and the eviction process is a legal process that is often finalized by the court. The tenants are given 10 business days in which to respond to eviction notices.
Tenant and Landlord Rights
- Tenants can demand repairs for essentials like water or electricity.
- Landlords must provide rent receipts for payments.
- Tenants have privacy rights; landlords need 24-hour notice for visits.
- Landlords can evict for property misuse or illegal activities.
- Tenants can seek legal recourse via rent courts for disputes.
Taxation and TDS Updates
Rental income is today categorised under Section 28 as income of residential property. Landlords with an annual income of less than 6 lakh do not have to pay TDS, which relieves the liquidity burden. Rent beyond 50,000 per month has to be deducted as TDS by the tenants.
Rent Control by State
| State | Max Annual Rent Hike (%) | Security Deposit Limit | Notice for Eviction |
|---|---|---|---|
| Maharashtra | 10 | 2 months’ rent | 3 months |
| Delhi | 8 | 2 months’ rent | 3 months |
| Karnataka | 5 | 2 months’ rent | 3 months |
| Tamil Nadu | 7 | 3 months’ rent | 3 months |
| West Bengal | 6 | 2 months’ rent | 3 months |
Stay Informed for 2025
The regulations of 2025 support a fair rental market in India. Landlords and tenants must undertake commercial activities using these documents and use the internet to register and seek legal advice, to be compliant with the laws. These transformations open doors to transparency and elimination of issues.
Also read: EPS-95 Pension Hike Update: Supreme Court Raises Floor to ₹7,500 from August