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New Rent Agreement 2025: The Union government has introduced the New Rent Agreement 2025 to bring more order and transparency to India’s growing rental market. The updated rules are based on the Model Tenancy Act and recent Budget announcements and aim to create a standard system that helps both tenants and landlords. The new framework comes as more people shift to rented homes and commercial properties across cities.

One of the most important changes is the requirement to register every rent agreement within two months of signing. Registration can be completed online on state property portals or at local registrar offices. Those who do not register on time may have to pay a penalty of Rs 5,000.

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The Act outlines several changes affecting tenants. The rules have been simplified to ensure clear communication on deposits, rent increases and evictions. Special Rent Courts and Tribunals will now look into disputes and are expected to deliver decisions within 60 days. 

Rent Agreement 2025: Key Rules For Tenants

- Mandatory registration of agreements within two months.

- Security deposits capped at two months’ rent for homes and six months for commercial properties.

- Rent increase rules must follow prescribed guidelines and require advance notice.

- Eviction processes defined clearly to prevent sudden removal from the property.

- Quicker dispute resolution through dedicated Rent Courts and Tribunals.

Rent Agreement 2025: Benefits For Landlords

Landlords will also benefit from the new structure. The government has increased the TDS exemption limit for rental income, which is expected to improve cash flow. Rental earnings will now be listed under ‘income from housing property’, making tax filing easier. There are also provisions to support action against tenants who repeatedly miss payments.

New Rent Agreement 2025: Key Features For Landlords

- Higher TDS exemption, increased from Rs 2.4 lakh to Rs 6 lakh per year.

- Simplified tax reporting under ‘income from housing property’.

- Faster action on cases involving three or more missed rent payments.

- Possible tax incentives for maintaining affordable rents or adopting energy-efficient upgrades.

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How To Register Rent Agreement

- Visit the state property registration portal.

- Upload ID proofs of both parties.

- Enter rent and property details.

- E-sign and submit the agreement.

The government believes the new system will reduce disputes and create a more reliable rental environment.

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