Society rules, repairs and tax on rent
The practical side of renting in Mumbai that agreements often skip: the society, who fixes what, who pays which charge, and the tax both sides must handle.
The society interview
Many Mumbai housing societies ask to meet a new occupant before move-in. In practice it is a short meeting with the secretary or a committee member to check identity, family size, work, vehicles and pets, and to explain the society's rules. Bring:
- the registered leave and licence agreement, or the draft if it is not yet registered
- photo ID and address proof (PAN, Aadhaar; passport and visa for foreign nationals)
- passport photos, and the police verification acknowledgement once filed
- vehicle registration, if you need parking
The owner, as the society member, must tell the society the flat is being given on leave and licence and share the agreement. A society can make reasonable rules on conduct, parking and the use of common areas, but its by-laws do not override the law, and it should not refuse a lawful occupant without a valid reason. Settle the society question before you pay a token.
Singles, bachelors and shared flats
Some societies discourage renting to single people or to unrelated sharers, and some owners prefer families. A society resolution is not law, but daily friction is real, so check first:
- Ask the owner to confirm in writing that the society has no objection to who will live there.
- For sharers, put every occupant's name in the agreement and police verification, not just one person.
- Ask about guest timings, visitors staying overnight, food and pet rules, and parking.
- Company-leased flats (the employer as licensee) are usually accepted more easily.
Who repairs what
| Item | Usually paid by |
|---|---|
| Structural repairs, leakage from slab or outer walls, plumbing inside walls | Owner |
| Appliances the owner supplied (AC, fridge, washing machine, geyser) when they fail from age | Owner |
| Painting at the start of the agreement | Owner |
| Day-to-day upkeep: bulbs, taps, washers, minor fixes, AC servicing | Occupant |
| Damage caused by the occupant or their guests | Occupant |
| Common areas, lifts, building exterior, water tank | Society, from maintenance paid by the owner |
Write a repair limit in the agreement, for example: the occupant pays up to ₹2,000 per repair; above that the owner pays. Photograph the flat and every appliance at handover.
Maintenance and society charges
| Charge | Who pays |
|---|---|
| Monthly society maintenance (service charges) | Owner, unless the agreement says otherwise. The society bills its member, the owner. |
| Sinking fund, repair fund, property tax | Owner |
| Non-occupancy charges (levied because the owner does not live there) | Owner. In Maharashtra these are capped at 10% of the service charges. |
| Electricity, piped gas, internet, DTH | Occupant, as per meter and bills |
| Water | Usually inside maintenance; some buildings bill separately |
| Parking | As agreed; often included with an allotted slot |
Moving-in and moving-out charges
Some societies charge a one-time fee or take a refundable deposit when someone moves in or out, mainly for lift use, damage to common areas and paperwork. It is a society practice, not a fixed government fee, and amounts vary widely. Ask the society for the figure and the rule in writing before move-in, and record in the agreement who pays it. Moves are usually allowed only at set hours, and many societies need notice for the service lift.
TDS on rent: who deducts, how much, how it is paid
| Who pays the rent | Rule | How it is managed |
|---|---|---|
| Individual or HUF (not under tax audit), rent above ₹50,000 a month | Section 194-IB: 2% TDS (5% before 1 Oct 2024). 20% if the owner gives no PAN. | Deducted once a year or in the last month of the tenancy. No TAN needed: pay with Form 26QC within 30 days of the end of that month, then give the owner Form 16C. |
| Company, firm, or individual under tax audit | Section 194-I: 10% on rent for land, buildings or furniture, above the yearly threshold | Needs a TAN. Deposit monthly by the 7th of the next month, file a quarterly TDS return (26Q) and issue Form 16A. |
| Anyone paying rent to an NRI owner | Section 195: about 31.2% (30% plus cess, more with surcharge) on every rupee of rent, no threshold, unless the owner has a lower-deduction certificate | Tenant needs a TAN, deposits monthly, files the 27Q return, issues Form 16A, and Form 15CA/15CB applies to remittances. |
The owner sees the TDS in Form 26AS / AIS and claims credit in their tax return. If TDS is missed, the tenant can face interest and penalty. Salaried tenants claiming HRA need rent receipts, and the owner's PAN if rent is above ₹1 lakh a year.
GST on rent and reverse charge
| Situation | GST |
|---|---|
| Home rented to an individual to live in | Exempt. No GST. |
| Home rented to a GST-registered business (company, firm), for example a company lease for an employee | 18% under reverse charge: the business pays the GST itself, not the owner. A registered proprietor renting a home in a personal capacity to live in is exempt. |
| Office, shop or other commercial space, owner registered for GST | Owner charges 18% GST on the rent |
| Commercial space, owner not registered, tenant registered | Tenant pays 18% under reverse charge (since 10 Oct 2024) |
An owner must register for GST once taxable rent (mainly commercial) crosses the threshold, ₹20 lakh a year in Maharashtra. Companies taking flats for staff should ask their tax team to account for reverse-charge GST.
Rentu.in, Mumbai rentals since 1995. General information, not legal or tax advice. Rules and fees change; confirm current figures before you sign or pay. Last reviewed October 2026.