Edtech company PhysicsWallah (PW) has been served a tax demand notice amounting to ₹263.3 crore by the Income Tax (IT) Department. The notice, issued under Section 143(3) of the Income-tax Act, challenges funds received from SEBI-registered Category II AIFs as taxable income for the year 2023-24.
Despite going public in November 2025 and reporting strong financials, PW now faces a legal battle against the tax order. The company plans to contest the notice, expressing confidence in its legal and factual stance for an appeal process.
PW’s journey from a private entity to a listed company has attracted attention, with the company previously raising substantial investments from prominent backers like WestBridge Capital, Lightspeed, and Goldman Sachs. While PW’s financial performance has shown growth, including a 33% year-over-year increase in net profit and a 34% year-over-year rise in operating revenue for the third quarter of FY26, the tax dispute adds a layer of complexity to its corporate narrative.
Source: Inc42 Media