Rental agreement

chinu (Querist) 20 March 2025 This query is : Resolved
I have to take a 3bhk flat on rent in Bengaluru for Rs 38,500. In all my previous agreements, consideration price is mentioned as Rs 0, whereas the vendor for making agreement is telling us to write consideration price as Rs 4,000.
What should be the consideration price for this and is this of any importance to me.
What exactly is meant by consideration price?
Is there any importance of mentioning this?

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Quick Summary

This discussion clarifies the 'consideration price' in a Bengaluru rental agreement. The correct amount should reflect the actual monthly rent, which is Rs 38,500, not an arbitrary lower figure like Rs 4,000 or Rs 0. Mentioning the accurate rent is crucial for a valid contract and for tax purposes, such as filing your Income Tax Return (ITR).

T. Kalaiselvan, Advocate (Expert) 20 March 2025
The consideration amount, which is the rent and any other payments, should be clearly mentioned in a rental agreement, as it's a crucial element for a valid and enforceable contract.

chinu (Querist) 20 March 2025
Thanks for the early response, sir. So, should it be Rs 4,000 or Rs 38,500?

T. Kalaiselvan, Advocate (Expert) 20 March 2025
The consideration amount would be the rental amount you are required to pay every mionth and you cannot dance to the fance ideas of the landlord.
You cannot get a 3 BHK apartment for a monthly rental amount of Rs. 4,000 anywhere in Bangalore and it may create problem to you when you file ITR

chinu (Querist) 20 March 2025
Thanks for the clarity, sir.

Dr. J C Vashista (Expert) 20 March 2025
It has to be 38,500/- per month

chinu (Querist) 20 March 2025
Thanks for the response, sir.

kavksatyanarayana (Expert) 20 March 2025
The rent amount shall be mentioned as Rs.38,500/-PM and you do not agree to Rs.4000/-

P. Venu (Expert) 21 March 2025
To my knowledge, as per the extant norms in Karnataka, Consideration Vale represents the average annual rent payable. How this could be 0 or 4000/-?

chinu (Querist) 21 March 2025
Thanks for the responses kavksatyanarayana sir and P. Venu sir.

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