The new Rental Agreement Act 2025 has brought in a number of changes in the existing rules to make things more transparent and convenient for millions of tenants, especially in the metro cities. The emphasis in the new rules is majorly on the digital verification, digitisation of records and taking things from manual to entirely digital.
The new system attempts to make a more structured system in an arena that has long been a manual trade of business, despite being an everyday task. For those going for studies or jobs in other locations face the issue with rental agreements, rent payments, verification and most prominently the security deposit.
Landlords to accept rent online
According to the new rule, the landlords have to take rent payments online so that it is digital and hassle free for many. Till date, many landlords stress on getting the rent in cash to avoid the income tax department’s eyes. However, the same is being streamlined now.
Also, those who are required to get the rent receipt and rent proof while filing the income tax return or for other purposes, they don’t get any as the rent is submitted to the landlord in cash. The rent paid to the landlord has to be mapped to the PAN card otherwise no proof of rent is available.
With the requirement of paying the rent online, the PAN card mapped to the account will have the rent mapped whenever the IT department goes through the income tax returns.
How the rent hike work under new rules 2025?
The new rules say the rent can be revised only after the completion of only 12 months, and with a written 90-day notice before implementing the hike.
These norms limit sudden or aggressive rent increases, a common issue in informal rental arrangements, and make arbitrary hikes legally challengeable.
