Extracts of Rules 63, 64, and 65 of the Draft Income-tax Rules, 2026 lay down detailed procedural and compliance requirements for approvals, notifications, and deductions under Sections 133 and 134 of the Act. Rule 63 designates the Principal Chief Commissioner of Income-tax (Exemptions) as the prescribed authority for granting approval to a university or educational institution of national eminence under section 133(1)(a)(vii), subject to mandatory concurrence from the Secretary of the University Grants Commission for universities or non-technical institutions and from the Secretary of the All India Council of Technical Education for technical institutions, as defined under their respective governing Acts. Rule 64 sets out guidelines for the Central Government to notify associations or institutions under section 133(1)(a)(xxiv), requiring that such bodies regulate or promote notified sports in India, demonstrate at least three years of dedication to sports development, refrain from distributing income to members (except grants to affiliated bodies), utilize donations strictly for sports infrastructure or sponsorship, and maintain proper accounts with regular return filing. Notifications may remain effective for up to three tax years, including prior assessments, as specified. Rule 65 stipulates that an assessee claiming deduction under section 134 for rent paid must file a declaration in Form No. 31, thereby prescribing documentary compliance as a precondition for availing the benefit.
Extract of Rule No. 63, 64 and 65 of Draft Income-tax Rules, 2026
Rule 63
Prescribed authority for approval of a University or any educational institution of national eminence for the purpose of section 133 of the Act.
(1) For the purpose of section 133(1)(a)(vii), the prescribed authority for granting of approval shall be the Principal Chief Commissioner of Income-tax (Exemptions).
(2) The prescribed authority shall grant approval with the concurrence of –
(a) the Secretary, University Grants Commission for a university or any nontechnical institution of national eminence; and
(b) the Secretary, All India Council of Technical Education for any technical institution of national eminence.
(3) For the purposes of sub-rule (2), —
(a) “All India Council of Technical Education” means the All India Council of Technical Education established under section 3 of the All India Council for Technical Education Act, 1987 (52 of 1987);
(b) “University Grants Commission” means the University Grants Commission established under section 4 of the University Grants Commission Act, 1956 (3 of 1956).
Rule 64
Guidelines for specifying an association or institution for the purposes of notificatio under section 133(1)(a)(xxiv) of the Act.
(1) In specifying an association or institution for notification under section 133(1)(a)(xxiv), the Central Government shall satisfy itself that such association or institution —
(a) has as its object the control, supervision, regulation or encouragement in India of the games or sports notified under section 133(7)(e);
(b) 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;
(c) 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;
(d) applies the amount received by way of donation referred to in section 133(1)(a)(xxiv) for purposes of development of infrastructure for games or sports in India or for sponsoring of games or sports in India;
(e) maintains regular accounts of its receipt and expenditure and files its return of income regularly;
(2) The notification issued by the Central Government under section 133(1)(a)(xxiv) 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.
Rule 65
Conditions for claim for deduction under section 134 of the Act.
For the purposes of claiming deduction under section 134 in respect of rent paid, the assessee shall file declaration in Form No. 31
