- To mobilize the savings of Air Force personnel past, present and their dependants and suitably invest the same and distribute the income so earned among its depositors.
- To levy contributions from the members and direct thereafter part of it to provide insurance cover to the IAF personnel while in service/retirement and to retain the balance in the Group Insurance Fund for utilization as a matter of general public utility for the welfare of retiring personnel and their dependants by providing lump sum benefit on retirement/release at a comparatively early age.
- To affiliate, amalgamate with and support any other Fund and to develop and extend the benefits to other categories of personnel working with the Air Force.
- To purchase, take on lease, hire or otherwise acquire and hold immovable or movable property and sell, lease or otherwise dispose off the same.
- To invest the money of the Society not immediately required for its use.
- To erect, maintain, repair, improve or hire any building for the use of the Society.
- To give loans / grants for welfare activities.
- To advance loans for construction/purchase of houses/flats to serving members.
- To advance loans for purchase of Conveyance to serving members.
- To advance loans for purchase of personnel computer to serving members.
- To grant subsidy for a dwelling unit to the widows of the deceased IAF personnel killed in accident while in service.
- To do all such other things as are incidental with or conducive to the furtherance of the above objects.
Income Tax Exemption
To Members. All contributions made by members towards life insurance are to be treated as insurance premium and would qualify for relief under Section 80C of Income Tax Act, 1961.
To the Society. All incomes received by the Society are eligible for exemption under the provisions of Section 10 (23) (c) (iv) and Section 10 (23 AA) of Income Tax Act, 1961.
On Interest Earnings. Ministry of Finance have issued Notification vide F 275/29/85 IT (B) dated 05 Jun 85 extending the exemption under Sub Section 3 of Section 194A of IT Act to Air Force Group Insurance Society. Accordingly, no income tax will be recoverable by Companies and Banks on the interest payable to the Society.
Foreclosure of Deposits with Companies without penalty. Gazette Notification No. 482 (E) dated 05 Jun 85, has been issued by the Government stating that deposits made by Air Force Group Insurance Society could be foreclosed during National Emergency before the expiry of maturity date and provisions of Rule 8 of Acceptance of Deposits Rules, 1975 regarding penalty clause would not apply in such contingencies. This has been made applicable for deposits made earlier to 05 Jun 85 also.