If you are taking additional deposit don’t agree to deduct portion of it every month 

2) it does appear to be loan 

If you are providing additional facilities charge higher rentals or higher deposit 

1. I am not clear what do you mean by ' additional deposit' as the same is hardly in place in rental business.

2. There is scope for taking ' security deposit ' which is to be refunded at the time of end of tenancy with or without interest after adjustment, if any, for the loss caused to the property.

3. With regard to your additional deposit there is hardly any convention in this business and it is your choice whether you wish to take this or not. This is certainly not a part of rent and the tenant can claim it as anything including loan as per his choice or convenience..

After 11 months the amenities provided by you will be yours.  He is adding value to your property and you are getting it  by spending in installments.  

This amount can be take as adjustable interest free security deposit then there shall be no issue , same can be mentioned in MOU and can be accordingly deposited there won't be any issue for the land lord then.

You can obtain additional deposit amount along with the regular deposit amount itself and dont have to show it as additional deposit.

This extra amount is obtained for the purpose of providing him additional facilities hence let this be merged with the originally agreed deposit amount itself.

Then there is no question of deducting the amount from the rental amount.

This shall be part of the agreement or the proposed MOU then there is no question of any legal hassle in future on this.

You may proceed on the basis of the suggestions rendered in the previous post or you can consult a local advocate for guidance based on the prevailing circumstances.

It's better you include the same in license fees and dont do the aforesaid

1.  Taking REFUNDABLE & INTEREST FREE "additional deposit" and recording them in the relevant Deed with strategic clauses of terms & conditions, would not amount to Loan, under the Income Tax parameters and is a perfect legal transaction, without any futuristic liability to your interests or in your Balance Sheet.

2. You can mutually consider taking "Advance Rent" for so & so Months, to cover up your capital expenditures.

Ok you can do so 

Yes. You can. This is not a issue. In fact, it is a gesture for healthy landlord and tenant relationship.

Best of luck

Yes interest free security deposit should be mentioned to avoid any additional claim.

GOOD LUCK.

You can decide to add the contents as proposed by you however you may have the document vetted by an experienced advocate before getting the same executed.

If you are taking deposit don’t agree to deduct it on monthly basis. 

No it will not be considered as loan from tenant it can be termed as advance rent which is about to be deduct from rentals on monthly basis.