Rules 63 and 64 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 63 and 64 of the Income-tax Rules, 2026 set the approval route for two donee categories under section 133 — an institution of national eminence, and a sports association or institution.
The first of rules 63 and 64 — national eminence
For the purpose of section 133(1)(a)(vii), the prescribed authority for granting approval is the Principal Chief Commissioner of Income-tax (Exemptions). But he does not act alone — sub-rule (2) requires concurrence:
| Applicant | Concurring authority |
|---|---|
| A University or any non-technical institution of national eminence | The Secretary, University Grants Commission |
| Any technical institution of national eminence | The Secretary, All India Council of Technical Education |
Sub-rule (3) fixes both bodies by statute: the All India Council of Technical Education established under section 3 of the All India Council for Technical Education Act, 1987, and the University Grants Commission established under section 4 of the University Grants Commission Act, 1956. The 1962 parallel is rule 18AAA.
The word rules 63 and 64 use is "with the concurrence of". A negative view from the UGC or AICTE Secretary is therefore not advice the tax authority may weigh and set aside — approval cannot issue without it. The practical consequence is that an applicant's case is made on academic standing first, and the income-tax file follows.
The second of rules 63 and 64 — sports associations and institutions
In specifying an association or institution for notification under section 133(1)(a)(xxiv), the Central Government shall satisfy itself that it:
- has as its object the control, supervision, regulation or encouragement in India of the games or sports notified under section 133(7)(e);
- has a proven record of dedication to the development of infrastructure or promotion of sports or games for at least a period of three years;
- does not distribute any part of its income in any manner to its members, except as grants to any association or institution affiliated to it;
- applies the amount received by way of donation referred to in section 133(1)(a)(xxiv) for development of infrastructure for games or sports in India, or for sponsoring games or sports in India; and
- maintains regular accounts of its receipt and expenditure and files its return of income regularly.
The notification shall be effective for up to three tax years, including any assessments for tax years prior to the notification date, as specified in the notification. The 1962 parallel is rule 18AAAAA.
This is the unusual feature of rules 63 and 64. A section 133(1)(a)(xxiv) notification runs for up to three tax years and may expressly cover assessments for tax years before the notification date. An association that qualified on the facts but was notified late can therefore still support donors' claims for the earlier years — if the notification says so. The scope has to be read off the notification itself, not assumed.
Reading the five conditions in rules 63 and 64 together
| Condition | What it tests |
|---|---|
| Object | The constitution — control, supervision, regulation or encouragement of notified games or sports in India |
| Three-year record | History, not intention — infrastructure development or promotion already carried on |
| No distribution | Application of income, with the single carve-out for grants to affiliated bodies |
| Application of donations | The use of the specific receipts — infrastructure or sponsorship, in India |
| Accounts and returns | Compliance record, tested on both bookkeeping and filing |
Condition (c) is the one most often misread. A grant down to an affiliated state or district body is permitted; a payment to a member in any other capacity is not, however it is described.
Worked example
| Facts | Position under rules 63 and 64 |
|---|---|
| Engineering institute seeking section 133(1)(a)(vii) approval | Principal Chief Commissioner (Exemptions), with AICTE Secretary's concurrence |
| Arts and science university seeking the same | Concurrence of the UGC Secretary |
| National federation for a notified sport, formed two years ago | Fails — three-year record required |
| Federation making grants to its affiliated state associations | Permitted — the express carve-out |
| Federation paying an honorarium to a member body's office-bearer out of income | Distribution — condition (c) in issue |
| Donation applied to sponsor a tournament abroad | Fails — application must be in India |
| Notification issued in tax year 2027-28 covering 2025-26 onwards | Valid if the notification so specifies, within the three-year limit |
Compliance checklist
- Route a national eminence application to the Principal Chief Commissioner (Exemptions), and secure the UGC or AICTE concurrence.
- Classify the institution correctly as technical or non-technical — it decides which Secretary concurs.
- For a sports body, confirm the games or sports are notified under section 133(7)(e).
- Evidence the three-year record with project and programme documentation.
- Check the constitution and accounts for any distribution to members outside the affiliate carve-out.
- Trace donation receipts to Indian infrastructure or sponsorship.
- Keep regular accounts and file returns regularly — both are express conditions.
- Read the notification's own period, including any earlier tax years it covers, before relying on rules 63 and 64.
Common mistakes
- Seeking approval without the concurring authority's support in place.
- Treating a technical institution as a UGC case.
- Applying donations abroad.
- Paying members under a description other than an affiliate grant.
- Assuming a notification runs only forward.