[Clauses that matter in a parent–child rent agreement]
Parties: Mr. Rajan Nair (Landlord), owner of House No. 12, Rose Villa, Kakkanad, Kochi 682030, and Ms. Anjali Nair (Tenant), his daughter.
Premises: One bedroom with attached bathroom and shared use of the kitchen and living room on the ground floor of the said house.
Rent: Rs. 15,000 per month, payable on or before the 5th of every month by bank transfer to the Landlord's account no. XXXX1234, Federal Bank.
Term: 11 months from 1 November 2026, renewable by mutual consent.
Landlord's declaration: The Landlord confirms that he is the sole owner of the premises (property tax assessment no. 12/3456) and that the rent received will be declared in his income-tax return.
PAN: Landlord's PAN ABCPN1234F is provided for the Tenant's HRA claim.
Signed
Rajan Nair (Landlord) · Anjali Nair (Tenant) · two witnesses
Names, numbers and dates above are examples. Replace them with yours.
Stamp paper, notary and signing
Same as any residential 11-month agreement in your state (Kerala Rs. 100–250 e-stamp; Karnataka 0.5% of annual rent + deposit; Maharashtra 0.25% with registration; Delhi 2% of average annual rent). The generator's state guide gives the figure. Rent receipts each month: use the free rent receipt generator.
Common questions
Is it legal to pay rent to parents?Yes. The Income Tax Act does not bar it; tribunals have allowed it when the payments are real. The arrangement must not be a paper-only one.
Can my parent be in the 30% bracket?Then the family's net tax saving shrinks, since the rent is taxed in their hands (after the 30% standard deduction on house property income). Do the maths with the HRA calculator.
Spouse instead of parent?Rent to a spouse is often disallowed because spouses are treated as one economic unit; parents are safer.
This page is a template and general guidance for a common situation, not legal advice. Rules differ by state and office; check with the office that asked for the document. Last reviewed October 2026.