Charging Interest in Microfinance Doesn’t Kill Charitable Status: ITAT Delhi

Humana People to People India Vs DCIT (ITAT Delhi) ITAT Delhi Holds Microfinance as Charitable – Charging Interest Doesn’t Kill Charitable Nature – ITAT Backs NGO’s Livelihood Work Background Assessee: Humana People to People India (HPPI), a not-for-profit company registered u/s 25 of Companies Act & u/s 12A of the Income Tax Act. Activities: Education, relief to poor, medical relief, environment & microfinance (since 2007). AO’s Findings (29.12.2019 u/s 143(3)): Noted income from commission, processing fee, interest, and microfinance exceeded 20% of total receipts. Applied...