Considerably more than all previous Indian changes in the Home Rent Rules, this has been introduced in the year 2025 by the Government of India. The aim is that these rules will create a very balanced and transparent market for the residential renting person. The changes are made keeping both owners and occupants in mind towards fairness as well as efficiency with respect to rental agreements and taxation.
Increased TDS Exemption Limit
Another major change that was introduced is the change in threshold tax deducted at source for the rental income. The Union Budget 2025-26 has now announced that the exemption limit goes from ₹2.4 lakh to ₹6 lakh annually. This simply means that a property owner with income of up to ₹6 lakh for rent per year will not have any deduction as TDS. This new rule is expected to clear the cash flow for landlords in mid incomes and help them to get the refunds easily.
Revised Taxation On Rental Income
Rental income will henceforth be known as “income from housing property” under the ambit of Section 28 of the Income Tax Act. This was introduced to clarify the taxation process and to encourage landlords to report rental earnings. The revised framework aims at offering a better financial and tax planning tool for property owners.
Implementation Of The Model Tenancy Law
The Model Tenancy Law sets out specific rights and obligations of both the landlord and the tenant, under which prior to raising rent, the landlord must provide written notice of three months to tenants. All landlord-tenant agreements must be registered with the rent authority within 60 days under this measure, which is expected to lessen disputes and ensure transparency in rental transactions.
Streamlined Rent Increases And Evictions
The above new rules aim to bring a degree of order into rent increases and eviction. In requiring prior notice and proper documentation in this regard, the government offers both parties protection by ensuring this. Surely, these provisions are establishing trust and cooperation between landlord and tenant.
Effects On Rental Market
It is expected that the new home rent laws would increase activity in the rental market by solving several longstanding problems. With the new rules, landlords would themselves find the TDS exemption on different heads make the handling of their finances a lot easier while the Model Tenancy Law is meant to bring down the additional anger and eliminated conflicts. Therefore, customers would be easily lured into making more homes available for rent.
Looking Ahead
These rent rules proved to be more effective in modernizing the rental market of India. By stressing transparency, equity, and efficiency, new and improved systems were built for a well-organized and balanced system. Gradually adapting heads under the roof of robust markets will eventually lead to improved trust in the relationship and well-being of all stakeholders.
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