Security deposit settlement calculator (India)
Most deposit disputes are not arguments about arithmetic. They start because a tenant gets a single net figure back with no explanation of where the rest went. Enter the deposit and each deduction below, and you get both the number and an itemised statement you can actually hand over.
Deductions
The full deposit is refundable. Nothing has been deducted, so ₹50,000 goes back to the tenant. Send the statement anyway — a clean settlement on paper is what stops a dispute months later.
Generate the statement (optional)
Fill these in to download a signed-off PDF you can hand to the tenant.
The calculator runs in your browser. The PDF is rendered on request and never stored — nothing here is saved to an account.
What you can and cannot deduct
A security deposit is the tenant’s money, held against what they might owe. That framing settles most questions: you deduct amounts the tenant genuinely owes, and nothing else.
Deductions that generally stand up:
- Unpaid rent up to the move-out date.
- Unpaid bills — electricity, water, maintenance or society dues left outstanding.
- Rent in lieu of short notice, where the agreement sets a notice period the tenant did not serve.
- Repairing damage the tenant caused, at documented cost.
The one that causes trouble is normal wear and tear, which is not deductible. Paint fades, fittings loosen and surfaces age through ordinary living, and that is the landlord’s cost of owning a property. The test is whether the deterioration came from normal use or from misuse and neglect. A cracked washbasin is damage. A three-year-old wall that needs repainting is wear and tear.
Repainting sits right on that line and is the single most contested deduction in Indian tenancies. Routine repainting between tenants is maintenance. It only becomes a fair deduction where the agreement expressly provides for it, or where the walls need more than their age would explain. If you deduct for it, write down why.
How much deposit, and how quickly must it come back?
The Model Tenancy Act 2021 caps the deposit at two months’ rent for residential premises and six months’ for commercial, and requires the refund within one month of the tenant vacating, after deductions.
The catch is that it is a model law. It binds only where a state has enacted it, and adoption is uneven. Where it has not been adopted, the agreement and the state’s own rent legislation govern — which is why deposits of six to ten months’ rent are still routine in Bengaluru while two months is the norm in much of the country. Check your state before quoting either number at a tenant.
Make the deduction survivable
A deduction is only as good as the evidence behind it. Before you settle:
- Photograph the property at move-in and move-out, dated both times. A deduction without a “before” is very hard to defend.
- Use real bills and quotes, not round-number estimates. “₹5,000 for damages” invites an argument; “₹4,780, plumber’s invoice attached” does not.
- Share the statement before you transfer the balance, so the tenant can query a line while it is still open rather than after.
Frequently asked questions
How much security deposit can a landlord take in India?
Under the Model Tenancy Act 2021, the deposit may not exceed two months' rent for residential premises and six months' rent for non-residential premises. It is a model law, so it only binds where a state has adopted it — in cities that have not, larger deposits remain common and Bengaluru is the well-known example, where six to ten months has long been normal. Where the Act does not apply, the tenancy agreement and the state's rent legislation govern.
When does a landlord have to refund the security deposit?
The Model Tenancy Act 2021 requires the deposit to be refunded within one month of the tenant vacating, after deducting whatever is legitimately owed. Where the Act has not been adopted, the deadline is whatever the agreement states; if the agreement is silent, the one-month standard is the usual reference point.
What can a landlord deduct from a security deposit?
Money the tenant genuinely owes: unpaid rent, unpaid electricity, water or maintenance bills, rent in lieu of a notice period that was not served, and the cost of repairing damage the tenant caused. Each deduction should be a real, evidenced amount rather than a round-number estimate.
Can a landlord deduct for normal wear and tear?
No. Fading paint, minor scuffs, loosened fittings and general ageing from ordinary living are the landlord's cost, not the tenant's. The line is between deterioration from normal use, which is not deductible, and damage from misuse or neglect, which is. A broken window is damage; a faded wall after three years is wear and tear.
Can a landlord deduct repainting from the deposit?
This is the most disputed line of all. Routine repainting between tenancies is generally maintenance, not damage, and is not deductible on that basis alone. It becomes arguable when the agreement expressly provides for it, or when the walls need work beyond normal ageing. If you are deducting for paint, say why in writing.
What happens if the deductions are more than the deposit?
The balance becomes an amount the tenant owes rather than a refund. It is recoverable in principle, but only realistically if every line is documented with dated photographs, bills and quotes — expect it to be challenged, and treat it as a claim you may have to prove.
What can a tenant do if the deposit is not refunded?
Start with a written demand setting a deadline, followed by a formal legal notice. If that fails, the route depends on the state: a Rent Authority where the Model Tenancy Act has been adopted, otherwise a civil suit for recovery, and in some cases a consumer forum. An itemised statement from the landlord makes the position clear either way, which is why producing one protects both sides.
The deposit is the part everyone gets wrong
Most rental software stops at collecting rent. Nestwise tracks the deposit as a running ledger for every tenant, and produces this settlement automatically at move-out — with the unpaid rent and charges already filled in, and the tenant notified on Telegram so they can query a line before the money moves. Free while in early access.
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