Flying club gets Income Tax Department exemption

NAGPUR: The Nagpur Flying Club (NFC) has got exemption from the Income Tax Department under section 12A of IT Act. This exemption, the notification for which was received by the club only a few days ago, follows in the wake of NFC getting recognized and registered as a government of India company which
is fully state-owned.

Previously, NFC was Nagpur Flying Club Private Ltd. But now, it will be just Nagpur Flying Club after it got recognition under section 25 of Companies Act in May last week. This change in its status has brought about exemption by the IT department.

"Financial burden of NFC will be reduced following this. We won't have to file any income tax returns, service tax etc which take away a substantial amount of our revenue. This will help us keep the fees at the lowest possible levels. Even now, NFC charges the lowest fees," said MAH Khan, NFC in-charge.

He said conversion from a private limited company to a 100% government-owned company will also compel the banks to give loans to trainee pilots at a lower rate.

Meanwhile, the plan of starting a parallel degree/diploma course along with NFC programme with Indira Gandhi National Open University (IGNOU) is also on track. "Regional registrar has assured me that he will recommend the course to the new vice-chancellor of the university. He has also said that everything will be done to start the course as early as possible," said Khan. NFC also plans to acquire new planes for training from a private party upon certain conditions. A final decision will be taken during a meeting on Monday.