CORAA
ലോഗിൻസൗജന്യ ട്രയൽ ആരംഭിക്കുക

Rent Agreement Format — 11-Month Leave and Licence Template (Word)

An 11-month leave-and-licence agreement with licence fee, deposit, escalation and notice clauses — drafted HRA-ready (landlord PAN recited) with the Section 194-IB TDS position noted for higher rents.

Free · CORAA original — SA-aligned
Updated 29 Jul 2026
Type
Leave & licence — 11-month term
Governing law
Indian Easements Act, 1882 (Sec 52); Registration Act, 1908
Stamp duty
Varies by state; registration if term ≥ 12 months
Key tax hook
194-IB TDS (2%) + landlord PAN for HRA above ₹1L rent
Share this template
Engagement details
The client and period this document is for.
Recited so the licensee can claim HRA — the employer requires the landlord's PAN where annual rent exceeds ₹1,00,000.
What’s inside

An excerpt from the template.

LEAVE AND LICENCE AGREEMENT

THIS LEAVE AND LICENCE AGREEMENT is made at ___ on ___ BETWEEN ___, residing at ___, holding PAN ___ (hereinafter referred to as the "Licensor") of the ONE PART, AND ___, permanently residing at ___, holding PAN ___ (hereinafter referred to as the "Licensee") of the OTHER PART.

WHEREAS the Licensor is the lawful owner and in possession of the premises situated at ___ (the "Licensed Premises"), and has agreed to grant the Licensee a licence to use and occupy the Licensed Premises on the terms below;

1. Grant of Licence and Term

↑ Excerpt only — the full template is what you download as Word
About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, nothing stored on our servers. We’ll ask for a work email once before your first download so we can send you the file and the occasional relevant update; after that, downloads on this device are instant. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

Why are rent agreements made for 11 months?
Because Section 17 of the Registration Act, 1908 makes registration compulsory for a lease of immovable property for a term of one year or more. An 11-month leave-and-licence stays below that line, so the parties avoid the registration process and its cost, and simply execute a fresh agreement on renewal. Note that some states treat leave-and-licence agreements differently and require registration regardless of term — check the law of your state.
When do I need my landlord's PAN to claim HRA?
When the annual rent paid exceeds ₹1,00,000, the employer requires the landlord's PAN (along with rent receipts) before allowing the HRA exemption through payroll, and the details also flow into the tax return. If the landlord does not have a PAN, a signed declaration to that effect is furnished instead. Reciting the landlord's PAN in the rent agreement itself, as this format does, avoids the annual scramble for it.
When does a tenant have to deduct TDS on rent?
Under Section 194-IB, an individual or HUF (not otherwise liable to tax audit) paying rent exceeding ₹50,000 per month to a resident must deduct TDS — at 2% with effect from 1 October 2024 (the rate was 5% earlier). The deduction is made once, in the last month of the financial year or the last month of the tenancy, deposited through Form 26QC, and a TDS certificate in Form 16C is issued to the landlord. No TAN is required for this deduction.
What is the difference between a lease and a leave-and-licence agreement?
A lease transfers an interest in the property to the tenant, giving the tenant exclusive possession and statutory protections that can make eviction slow. A licence under Section 52 of the Indian Easements Act, 1882 is a bare permission to use the premises — legal possession stays with the owner, no interest in the property passes, and the arrangement ends per its own terms. Landlords prefer leave-and-licence for exactly this reason, and the drafting (as in Clause 8 of this format) must consistently avoid tenancy language.
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