What it is: Each state in India may have its own Rent Control Act, which regulates the relationship between landlords and tenants. The Act aims to provide protections to tenants from eviction without proper grounds and establishes the rights of tenants regarding rent increases, maintenance, and security deposits.
The Act often prevents landlords from evicting tenants without sufficient reason, such as failure to pay rent or illegal activities.
Right to Fair Rent: Tenants are entitled to pay rent that is considered reasonable and cannot be arbitrarily increased by the landlord without following legal procedures.
Right to Security of Tenure: A tenant cannot be evicted from the property without due legal process, and they have the right to continue occupying the premises as long as the rental agreement is valid.
Right to Privacy: The landlord cannot enter the tenant's rented space without prior consent, except for emergencies or as stipulated in the rental agreement.
Paying Rent: Tenants must pay rent on time and maintain the property in good condition.
Security Deposit: Most rental agreements require tenants to pay a security deposit, which is refundable at the end of the lease term, subject to the condition of the property.
Maintenance: Tenants are generally responsible for minor repairs and maintenance, while landlords are responsible for major repairs.
Grounds for Eviction: Landlords can only evict tenants based on specific grounds, such as non-payment of rent, subletting without permission, or the need to use the property for personal reasons. Eviction requires a court order in most cases.
The eviction process is usually a lengthy legal process, providing tenants with time to contest it.
What it is: In 2021, the Indian government introduced the Model Tenancy Act to standardize rental agreements and improve the rental housing market. It aims to balance the rights of both landlords and tenants, offering a streamlined dispute resolution mechanism and protecting tenants from arbitrary eviction.
Who it applies to: Individuals, Hindu Undivided Families (HUFs), or businesses paying rent for non-residential properties, which include land, building, or plant/machinery.
TDS Deduction Threshold: TDS applies only if the annual rent exceeds ₹2.4 lakh. If the rent is below ₹2.4 lakh annually, TDS is not required.
TDS Rates:
Deposit Deadline: TDS must be deposited by the 7th of the next month. For rent paid in March, the deposit deadline is 30th April.
TDS Certificate: The tenant is required to issue Form 16A to the landlord, showing the TDS amount deducted.