Rental Agreement Drafting (Haryana & Delhi)
A rental agreement settles the money and the exit terms before anyone argues about them. We draft residential and commercial agreements for your review, work out the stamp duty, and tell you whether 11 months will do or the law needs a registered lease.
What it is
A rental agreement is the written contract between a landlord and a tenant: what is being let, and on what terms. In law it is a lease of immovable property, governed by the Transfer of Property Act, 1882, the Registration Act, 1908 and the Indian Stamp Act, 1899.
Section 107 of the Transfer of Property Act says a lease from year to year, for any term exceeding one year, or reserving a yearly rent can be made only by a registered instrument. Section 17(1)(d) of the Registration Act makes the same leases compulsorily registrable. Short leases are different. They can be unregistered written agreements, which is why so many flats in Delhi-NCR are let on 11-month agreements.
Either way, the paper must carry the right stamp duty. In Haryana, e-stamp paper is generated against a GRN on the e-GRAS portal. In Delhi, rent agreements are executed on e-stamp certificates.
Who it applies to
Letting a flat or house
You want the deposit and notice period in writing, and the tenant verified by the police before the keys change hands.
Taking an office for your company
A company using rented premises as its registered office files a notarised rent agreement in its name, with a rent receipt not older than one month.
Renting a shop or warehouse
Commercial leases run longer, carry lock-ins and bring GST and TDS into the rent. Above one year, the lease must be registered.
Why it matters
Keep it usable in court
A properly stamped agreement can be produced as evidence the day a dispute starts, with no duty or penalty to settle first.
Settle disputes before they start
Deposit refunds, rent increases and repairs each get a plain-words clause.
Prove your address
Haryana’s shop and establishment registration accepts a lease or rent deed as proof of possession.
11 months or a registered lease?
| 11-month agreement | Registered lease | |
|---|---|---|
| Term | Less than a year; a fresh agreement at each renewal | More than one year, year to year, or a yearly rent |
| Registration | Not compulsory | Compulsory: Section 17(1)(d), Registration Act; Section 107, Transfer of Property Act |
| Government charges | Stamp duty on e-stamp | Stamp duty on e-stamp, plus the registration fee |
| Signing | Landlord and tenant sign | Both execute it, and it is presented to the Sub-Registrar within four months (Section 23) |
Picture a Faridabad family letting the first floor of their house to a working couple. An 11-month agreement on e-stamp paper, renewed each year, does the job. Here is the catch: length is not the only test in Section 17(1)(d). A lease that reserves a yearly rent also needs registration, so on short agreements we keep the rent monthly.
Now take a Ballabgarh warehouse let for five years with a three-year lock-in. That lease must be registered. If it is not, Section 49 of the Registration Act says it does not affect the property and cannot be used as evidence of it.
Stamp duty on a lease is set by Article 35 of the stamp schedule. It turns on the term and the average annual rent, with any premium or advance charged separately. We compute the exact figure from the current Haryana or Delhi schedule before you buy the e-stamp.
Documents required
From the landlord
- Ownership proof: sale deed, conveyance deed or allotment letter
- PAN and photo ID
- Latest electricity or water bill
From the tenant
- ID, address proof and photograph of each adult occupant
- For a company: PAN and a board resolution naming the signatory
- GSTIN, if registered
About the deal
- Rent, deposit and due date
- Start date, term, lock-in and notice period
- Fittings list and who pays which bills
How it works
Tell us the deal
Rent, deposit, term, and each side’s GST status.
Pick the route and price the stamp duty
We tell you whether 11 months will do or a registered lease is needed, and work out the stamp duty.
Review the draft
We draft the agreement for your review, and you share it with the other side until both agree. If a dispute later needs a legal notice or a court case, that must be signed by a practising advocate.
Stamp, sign and register
The agreement goes on e-stamp paper and both sides sign. A lease that needs registration is presented to the Sub-Registrar of the area within four months of signing.
Verify the tenant and set up the tax
We help you complete tenant verification online with Delhi Police or on Haryana Police’s HarSamay portal, then set up TDS and GST on the rent.
Timelines
Register a long lease within four months
Section 23 of the Registration Act gives four months from the date of execution to present the lease for registration.
Re-stamp at every renewal
A renewal is a new agreement, so it needs fresh e-stamp paper. Diarise it a month before the term ends.
Deduct TDS when it falls due
Under Section 194-IB, an individual tenant deducts once, for the last month of the year or of the tenancy. Under Section 194-I, tax is deducted at credit or payment, whichever is earlier.
Residential vs commercial: clauses and tax
| Residential | Commercial | |
|---|---|---|
| Term | 11 months, renewed | Longer, with a lock-in |
| Use clause | Residence only; occupants named | Permitted business and signage |
| Fit-outs | Inventory of fittings | Fit-out period, ownership of improvements, restoring the premises on exit |
| GST | Exempt as a residence; 18% under reverse charge if the tenant is GST-registered | 18%; paid by a registered tenant under reverse charge if the landlord is unregistered |
| TDS (FY 2025-26) | 2% under Section 194-IB above ₹50,000 a month | 10% under Section 194-I above ₹50,000 a month |
On GST, a tenant under the composition scheme does not pay reverse charge on commercial rent. In practice, a Gurugram startup renting an office from an owner who is not GST-registered pays the 18% itself. A landlord who must register can do so through our GST registration service.
On TDS, Section 194-I applies to companies, firms and other businesses, and to individuals and HUFs whose turnover crossed ₹1 crore (or professional receipts ₹50 lakh) in the previous year. Other individuals and HUFs use Section 194-IB at 2%. So a salaried couple in Delhi paying more than ₹50,000 a month deducts 2% once, in March or when they move out, without a TAN. From 1 April 2026 the Income-tax Act, 2025 applies, and our TDS return filing team keeps the deductions current.
What happens if you skip stamping or registration
Your agreement stays out of evidence
Section 35 of the Indian Stamp Act keeps it out of evidence until the duty is paid, with a penalty of up to ten times the shortfall.
An unregistered long lease fails
Under Section 49 of the Registration Act, a lease that had to be registered but was not does not affect the property.
Tax lands on the tenant
A registered tenant owes reverse-charge GST when the landlord is unregistered, and must answer for TDS it failed to deduct.
Frequently asked questions
Is an 11-month rental agreement valid without registration?
Yes. Under Section 17(1)(d) of the Registration Act, 1908, registration is compulsory only for leases from year to year, for a term exceeding one year, or reserving a yearly rent. An 11-month agreement with a monthly rent falls outside that list. It still needs the correct stamp duty to be usable as evidence. Stamped properly and renewed on fresh e-stamp paper, it is a sound way to let a home.
How is stamp duty on a rent agreement calculated in Haryana and Delhi?
It depends on the term and the average annual rent, under Article 35 of the stamp schedule, with any premium or advance charged separately. In Haryana the e-stamp is generated against a GRN on the e-GRAS portal; in Delhi the agreement goes on an e-stamp certificate. We work out the exact duty before you pay anything, so there is no shortfall to fix later.
How is a tenant verified by the police?
Online, through the local police. Delhi Police lists a Domestic Help/Tenant Registration service among its citizen services, and Haryana Police issues a digitally signed Tenant Verification Certificate through its HarSamay portal. Keep the tenant’s ID, address proof and photograph ready, and finish it before the tenant moves in. We collect these papers along with the agreement, so nothing has to be chased twice.
Is GST payable on rent?
On commercial rent, yes, at 18%. A registered landlord charges it; if the landlord is unregistered, a registered tenant pays it under reverse charge, unless on the composition scheme. A home let as a residence is exempt, except when let to a GST-registered tenant, who then pays 18% under reverse charge. A registered proprietor renting in a personal capacity to live in is not caught. We check both sides’ GST status before drafting the rent clause.
Is TDS deductible on rent paid in FY 2025-26?
Only if the rent exceeds ₹50,000 for a month or part of a month. A business tenant deducts 10% under Section 194-I for land, building or furniture, and 2% for plant and machinery. An individual or HUF tenant outside Section 194-I deducts 2% under Section 194-IB. For rent from 1 April 2026, the Income-tax Act, 2025 applies. We confirm which case you fall in before the first rent is paid.
Does an individual tenant need a TAN to deduct TDS on rent?
No. Section 194-IB says the TAN requirement in Section 203A does not apply to an individual or HUF deducting tax on rent. The tenant deducts 2% once, when rent for the last month of the financial year, or of the tenancy, is credited or paid. The landlord’s PAN is needed. We handle the filing and send the landlord the TDS certificate.
Can a rent agreement be used as office address proof for a company?
Yes. Rule 25(2) of the Companies (Incorporation) Rules, 2014 accepts a notarised lease or rent agreement in the company’s name, with a rent receipt not older than one month, the owner’s authorisation with proof of ownership, and a utility bill not older than two months. For a new private limited company, we draft the agreement in its name from day one, so the filing goes through first time.
What if the tenant stops paying or will not leave?
Start with the agreement: a clear notice clause and deposit terms can settle matters without a court. We draft the agreement and any follow-up letters for your review. A legal notice or a court case, though, must be signed and filed by a practising advocate, and the stamped agreement, registered where the law requires, is the evidence it rests on. Drafted carefully at the start, it keeps that step rare.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
The government charges are stamp duty, paid through e-stamp, and for a registered lease the Sub-Registrar’s registration fee. Both depend on the state, the term and the rent, so we work them out before you buy the e-stamp.
Ready to begin?
Send us the rent, deposit and term, and we will send back a draft agreement with the stamp duty worked out.