If you’ve ever rented a home in India, you’ve probably signed an 11-month agreement. It’s not a coincidence or a superstition — it’s a practical way to avoid a specific legal requirement. Here’s the reasoning, and what a solid agreement should include.
Why 11 months, not 12?
Under the Registration Act, a lease of 12 months or more generally requires compulsory registration at the Sub-Registrar Office, which means paying stamp duty and registration fees and physically registering the document. An 11-month leave & license agreementstays under that threshold, so landlords and tenants commonly use it to keep things simple. It can be renewed at the end of the term. Always confirm the current rules for your state, as they vary.
Leave & license vs lease
Most short residential agreements are structured as a leave and license — the owner (licensor) grants the occupant (licensee) permission to use the premises, rather than transferring a tenancy interest. This structure is favoured because it’s easier to end and doesn’t create the stronger occupancy rights a formal lease can.
What a complete agreement should contain
- Full party details — names, parentage, ID (Aadhaar/PAN) and addresses of landlord and tenant
- The property schedule — a precise description of the premises
- Rent, deposit, due date and payment terms
- Term (e.g. 11 months), start date and notice period
- Responsibilities for maintenance and utilities
- Permitted use (residential or commercial), sub-letting and default clauses
- Two witnesses and space for the notary
Stamp paper, notarisation and registration
Print the agreement on non-judicial stamp paper of the applicable value (commonly ₹100 for an 11-month leave & license in Tamil Nadu; other states differ), have both parties and two witnesses sign it, and get it notarised. Notarisation makes it a valid document for everyday purposes; registration is a separate step that becomes compulsory for longer terms. Many states also require tenant police verification — keep the acknowledgement on file.
What about TDS on rent?
If monthly rent exceeds ₹50,000, the tenant must deduct TDS under Section 194-IB at 2% (reduced from 5% with effect from 1 October 2024) and deposit it using Form 26QC. Both parties’ PAN should be captured. This is informational, not tax advice.
Build one free
The free rental agreement builder walks you through all of the above step by step — residential or commercial — and produces a complete, notary-ready draft with the right clauses and jurisdiction guidance. No signup.