PhysicsWallah Faces ₹263 Crore Tax Demand Case
New Delhi: PhysicsWallah has received an income tax demand notice of ₹263.34 crore for the assessment year 2023-24. The notice was issued by the Income Tax Department, creating concern around the company’s finances.
According to the company, the tax department has treated the funds received from investors as taxable income. These funds include investments from Category II Alternative Investment Funds (AIFs), which are usually not considered regular income.
PhysicsWallah said it received the assessment order on March 16 and plans to challenge it. The company believes that it has strong legal and factual grounds to contest the decision. It is expected to file an appeal before the appropriate authority soon.
Despite the large tax demand, the company has assured that its business operations will not be affected. It stated that its financial position remains stable and the issue will be handled through legal channels.
The edtech company, founded by Alakh Pandey and Prateek Maheshwari in 2020, has shown strong growth in recent months. Its consolidated profit increased by 33% to ₹102.27 crore in the December quarter. Revenue from operations also rose by 33% to ₹1,082.41 crore.
The number of paid users has grown from 36 lakh to 43.7 lakh, showing rising demand for its services.
PhysicsWallah is also expanding its business. It plans to launch “PhysicsWallah Student Housing” to provide hostel facilities for students in major cities. Additionally, the company has approved a ₹1.5 crore investment in Kay Wellness, acquiring a 50% stake.
Overall, while the tax notice is a major development, the company remains confident about its future growth and legal position.
