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Rent agreement

Statutory Audit 738 views 1 replies

tirtha raj tamang

article assistant

66 Points Posted on 17 September 2014

Note: As per Rent agreement:- 14) Lease rent will be Rs.51000/-(Fifty one thousand Only) for the first year and for the second year, it will be Rs.55,000/-(Fifty-five Thousand Only) and thereafter in accordance to paragraph 15 15)That this lease shall be governed by the prevalent Rent Control Act's provisions and the rate of lease shall continue to increase as per Rules, Regulations and Provisions thereof from time to time, which is 5%(FIVE) percent per annum. commencement of the lease shall be treated since 1st may 2009 for the period of Five years. please Interpret the above para. and clarify my doubt.

Replies (1)

Abhijeet Deshpande

Co-Founder & Manager @ Tax-Yantra

1171 Points Posted on 17 September 2014

Lease is for 5 years starting from 1st May 2009 and ending on 30th April 2014.

Lease rental shall be Rs. 51,000 for 1st year, meaning from 1st May 2009 to 30th April 2010.

Lease rental shall be Rs. 55,000 for 2nd year, meaning from 1st May 2010 to 30th April 2011.

And thereafter lease rental shall increase @ 5% i.e., (Rs. 55,000 + 5%) for 3rd year and etc. This means that for rest of the lease period, rent shall increase by 5% from the previous year.