Is It Legal to Understate Rent in a Bangalore Rental Agreement?

[User_263b27b6]

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User_263b27b6
PARTICIPANT
February 2, 2025 at 2:29 am

Hey everyone, I need some legal advice regarding my rental agreement renewal in Bangalore.

I pay ₹40,000 as rent every month, but in the renewed rental agreement, the consideration price (stated rent) is mentioned as ₹30,000. When I asked my landlord about this, he said it’s because of recent updates to stamp duty charges in Karnataka and assured me that it wouldn’t affect anything, even if I file my tax returns.

I’m concerned about the legal and practical implications for me as a tenant. If my agreement officially states ₹30,000 instead of ₹40,000, could this cause issues if there’s ever a dispute over rent, security deposit, or anything else? Also, is this even legal?

Would really appreciate any insights from those familiar with rental laws in Karnataka. Thanks!

Is It Legal to Understate Rent in a Bangalore Rental Agreement?

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[User_c93e0e59]

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User_c93e0e59
PARTICIPANT
February 2, 2025 at 2:46 am

I do not know what is he trying to achieve by reducing just 10k. In fact he will be in trouble if you turn around and say you will only pay what has been agreed on paper which is 30k. It should not impact you, he is trying to evade tax.

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[User_df8e6abe]

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User_df8e6abe
PARTICIPANT
February 2, 2025 at 4:06 am

I would be paying 30k instead of 40k because technically and legally, the agreement says so.

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[Saratseeker418]

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Saratseeker418
PARTICIPANT
February 2, 2025 at 4:42 am

There are two questions here

1. Is it legal ? The answer is self evident, it’s not

2. Will it affect you ? As far as deposit is concerned if the agreement mentions a figure, you’re not affected in terms of deposit return. As far as your HRA claim is concerned that’ll be limited to 30k. If both are non issues for you, then it’s fine

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