The government has implemented the New Rent Agreement 2025, which has brought many major changes for both renters and landlords. According to the new rules, now heavy advance rent of 3 to 6 months will not be charged on residential property. Only 2 months security deposit will be taken from the tenant, whereas for commercial property a maximum of 6 months advance is valid. It will be mandatory to give prior written notice to the landlord for increasing the rent, so that arbitrary increase can be stopped. Eviction will no longer be possible without legal procedure and if the tenant does not pay rent for 3 months, the case can be sent directly to the tribunal. Landlords have also got relief in tax. The limit of TDS on rent has been increased from Rs 2.4 lakh to Rs 6 lakh annually, due to which TDS will not be deducted on excess rental income. The benefit of these protections will be available only when the Rent Agreement is compulsorily registered within two months. Registration can be done online or at the nearest registrar office. Failure to register on time may result in a fine of Rs 5,000. Special rent courts and tribunals have been created for speedy resolution of disputes, with the aim being to settle cases within 60 days. In this video, the main rules of the New Rent Agreement 2025, rights of tenants and landlords, and new legal protections are explained in simple language.
