Agreement & Registration
Leave & Licence Agreement
The standard legal format for renting residential property in Maharashtra — not a typical "rent agreement." It grants a tenant temporary permission (a licence) to occupy the property rather than a tenancy with permanent rights, and automatically ends when the agreed period expires, usually 11 months. See Chapter 5.
Lock-in Period
The minimum length of time in a rental agreement before either the landlord or tenant can exit without penalty — typically matches the agreement's full term, most often 11 months.
Stamp Duty
A government tax paid to legally register a rental agreement in Maharashtra, calculated as 0.25% of (monthly rent × number of months + 10% of the deposit). Paid digitally via the e-SBTR or SHCIL portal. See Chapter 5.
IGR Maharashtra
Inspector General of Registration, Maharashtra — the government portal (igr.maharashtra.gov.in) where Leave & Licence agreements are officially registered.
Money & Deposits
PDC (Post-Dated Cheque)
A cheque written with a future date, held by the landlord as financial security instead of a large cash deposit. A bounced PDC is a criminal offence under Section 138 of the Negotiable Instruments Act, giving landlords real legal leverage. See Chapter 4.
Security Deposit
An upfront refundable sum a tenant pays before moving in, meant to cover potential damage or unpaid bills. The exact legal cap in Maharashtra is currently disputed — see the Glossary About FAQ for the full explanation.
Non-Occupancy Charges
A fee some housing societies charge when a flat is rented out rather than occupied by the owner. Legally capped at 10% of Service Charges under a Supreme Court ruling.
Tax
TDS (Tax Deducted at Source)
Tax a tenant is legally required to deduct from rent payments above a threshold, before paying the landlord, and deposit directly with the government. Rates and thresholds under Sections 194IB and 194I are covered in Chapter 8.
Form 16A
The certificate a tenant must give a landlord as proof that TDS was deducted and deposited with the government.
Income from House Property
The tax category under which rental income is declared in an Indian income tax return, eligible for a standard 30% deduction plus property tax and home loan interest deductions.
Verification & Compliance
NOC (No Objection Certificate)
A letter some housing societies request before a flat is rented out. Not legally mandatory under Maharashtra bye-laws — landlords are required only to inform the society, not seek permission. See Chapter 5.
Tenant Police Verification
A mandatory, free process under Section 144 of the Maharashtra Police Act, 1951, completed via the Mumbai Police Tenant Information Portal within 15 days of a tenant moving in.
Eviction & Disputes
Section 24 (Maharashtra Rent Control Act)
The legal pathway for evicting a tenant after a Leave & Licence agreement expires, via a faster summary hearing before the Competent Authority — typically the Court of Small Causes in Mumbai. See Chapter 7.
Section 16 (Maharashtra Rent Control Act)
Sets out valid grounds for eviction beyond licence expiry — non-payment of rent, unauthorised subletting, nuisance, or the landlord's bona fide need for the property.
Self-Help Eviction
Illegally removing a tenant without going through the proper legal process — changing locks, cutting utilities, or physically removing belongings. A criminal offence under Section 448 IPC and Section 29 of the Maharashtra Rent Control Act, regardless of how justified the landlord feels.
Competent Authority
The government-designated body that hears Section 24 eviction applications for Leave & Licence disputes — in Mumbai, typically the Court of Small Causes.