Finance Formula • Published on September 04, 2026 • Last updated September 04, 2026
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Total deposit sum transferred to landlord at the commencement of tenancy agreement
Contractual rent accrued and unpaid by tenant prior to move-out date
Documented electricity, water, piped gas, and society maintenance dues for tenancy period
Actual physical damage caused by negligence or willful misuse, supported by contractor repair GST invoices
Natural weathering, wall paint aging, minor furniture scuffs, and structural fading resulting from ordinary daily living (legally non-deductible)
Under Indian tenancy jurisprudence and the central Model Tenancy Act 2021, a security deposit is a trust fund held by the landlord to guarantee against unpaid rent and tenant-caused damage.
Landlords frequently make arbitrary deductions for routine property repainting, minor scuff marks, and normal wear-and-tear.
The law establishes that capital property maintenance and ordinary weathering are the sole financial responsibility of the landlord, and deductions are legally valid only when supported by move-in comparison evidence and genuine repair tax invoices.
No. Under the Model Tenancy Act 2021 and Indian contract law, standard repainting is routine maintenance and the landlord's asset upkeep responsibility. Natural paint fading and sunlight discoloration are Normal Wear and Tear. Deductions are only lawful if the tenant caused severe, willful wall defacement beyond normal living.
The Model Tenancy Act caps residential security deposits at a maximum of 2 months' rent, and commercial premises deposits at a maximum of 6 months' rent.
The tenant can follow a 3-step legal process: (1) Issue a formal written settlement statement with move-out inspection photos, (2) Serve an advocate legal notice citing Section 13 of the Tenancy Act, and (3) File a dispute petition before the local Rent Authority or District Consumer Commission claiming deposit principal plus 18% interest.
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