I'm applying for Schengen visa through the Austrian Embassy. I no longer live in the city where my passport was issued. I've moved to a different city 8 months ago. So I'm applying in the city where I'm currently living. Will there be any problems? And should I provide any additional documents like my rent agreement?
The Schengen Visa Code requires applicants to apply to the consulate in whose jurisdiction they reside. The place of issue of the passport is not relevant.
This is controlled by article 6, which reads in full:
Consular territorial competence
An application shall be examined and decided on by the consulate of the competent Member State in whose jurisdiction the applicant legally resides.
A consulate of the competent Member State shall examine and decide on an application lodged by a third-country national legally present but not residing in its jurisdiction, if the applicant has provided justification for lodging the application at that consulate.
If you reside in Pune, therefore, you must apply in Pune. This is true even if your passport was issued in New Delhi or in Ottawa. In fact, if you were to apply in New Delhi, they should reject your application with instructions to apply in Pune.