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

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Engagement details

The client and period this document is for.

Date of agreement

Place of execution

Licensor (owner) — Name

Licensor — Address

Licensor — PAN

Recited so the licensee can claim HRA — the employer requires the landlord's PAN where annual rent exceeds ₹1,00,000.

Licensee (occupant) — Name

Licensee — Permanent address

Licensee — PAN(optional)

Licensed premises — Full address

Permitted use

Licence start date

Monthly licence fee / rent (₹)

Rent payable by (day of month)

Interest-free security deposit (₹)

Notice period for termination

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Rent Agreement Format — 11-Month Leave and Licence Template

LEAVE AND LICENCE AGREEMENT

THIS LEAVE AND LICENCE AGREEMENT is made at {{execution_place}} on 30 July 2026 BETWEEN {{licensor_name}}, residing at {{licensor_address}}, holding PAN {{licensor_pan}} (hereinafter referred to as the "Licensor") of the ONE PART, AND {{licensee_name}}, permanently residing at {{licensee_address}}, 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 {{premises_address}} (the "Licensed Premises"), and has agreed to grant the Licensee a licence to use and occupy the Licensed Premises on the terms below;

NOW IT IS HEREBY AGREED AS FOLLOWS:

1. Grant of Licence and Term

The Licensor hereby grants to the Licensee a licence, within the meaning of Section 52 of the Indian Easements Act, 1882, to use and occupy the Licensed Premises for Residential purposes only, for a period of eleven (11) months commencing on {{licence_start_date}}. The licence may be renewed for a further period on such revised terms as the parties may mutually agree in writing under a fresh agreement.

2. Licence Fee

The Licensee shall pay to the Licensor a monthly licence fee of ₹{{monthly_rent}}, payable in advance on or before the 5th day of each English calendar month, by bank transfer to the account of the Licensor. Electricity, water, gas, and maintenance/society charges for the period of occupation shall be borne by the Licensee as per actual bills, unless otherwise agreed.

3. Security Deposit

The Licensee has paid to the Licensor an interest-free refundable security deposit of ₹{{deposit_amount}}, receipt whereof the Licensor acknowledges. The deposit shall be refunded to the Licensee on vacation of the Licensed Premises and delivery of vacant possession, after deducting arrears of licence fee, unpaid utility bills, and the reasonable cost of repairing damage beyond normal wear and tear, if any.

4. Escalation on Renewal

On renewal of this licence for a further term, the monthly licence fee shall stand enhanced by ______% (or such other percentage as the parties may mutually agree in writing) over the licence fee last paid.

5. Use and Care of the Premises

The Licensee shall use the Licensed Premises only for the permitted use, shall not sublet, assign or part with possession of the premises or any part thereof, shall not make structural additions or alterations, shall not store hazardous goods, and shall not cause nuisance or annoyance to occupants of neighbouring premises. The Licensee shall maintain the premises and fittings in good condition, normal wear and tear excepted, and shall comply with the rules of the society/association, if any.

6. Licensor's Obligations

The Licensor shall pay all property taxes and society/maintenance dues of an ownership nature in respect of the Licensed Premises, shall keep the premises structurally sound, and shall permit the Licensee peaceful use and occupation of the premises during the subsistence of the licence. The Licensor may inspect the premises at reasonable times with prior notice to the Licensee.

7. Termination and Notice

Either party may terminate this Agreement before the expiry of the term by giving One month prior notice in writing to the other party. On expiry or earlier termination, the Licensee shall hand over vacant and peaceful possession of the Licensed Premises to the Licensor in the condition received, normal wear and tear excepted, whereupon the Licensor shall refund the security deposit as per Clause 3.

8. No Tenancy

This Agreement creates a bare licence in favour of the Licensee. Nothing herein shall be construed as creating a lease, tenancy, sub-tenancy or any interest of the Licensee in the Licensed Premises. Legal possession and control of the premises remain at all times with the Licensor.

9. Income-tax Recitals

The Licensor's PAN ({{licensor_pan}}) is recited in this Agreement to enable the Licensee to claim exemption of house rent allowance — where the annual rent paid exceeds ₹1,00,000, the Licensee's employer requires the landlord's PAN (with rent receipts) for the HRA claim. Where the monthly licence fee exceeds ₹50,000, the Licensee (being an individual or HUF) shall deduct tax at source under Section 194-IB of the Income-tax Act, 1961 at the rate in force (2% with effect from 1 October 2024), in the last month of the financial year or of the tenancy, deposit it in Form 26QC, and furnish Form 16C to the Licensor.

10. Stamp Duty and Registration

This Agreement is executed on stamp paper of the value required for a leave-and-licence agreement under the Stamp Act applicable in the State of execution; stamp duty varies by state, and some states (for example, in respect of leave-and-licence agreements) require registration irrespective of the term. Each party shall retain a duly stamped counterpart.

IN WITNESS WHEREOF the Licensor and the Licensee have set their respective hands to this Agreement on the day, month and year first above written.

_______________________________

{{licensor_name}} (Licensor)

_______________________________

{{licensee_name}} (Licensee)

Witnesses

1. Signature: _______________________________

Name: _______________________________

Address: _______________________________

2. Signature: _______________________________

Name: _______________________________

Address: _______________________________

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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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