Big relief for PhysicsWallah as Income Tax dept reduces tax demand by Rs 70 crore, appeal filed

Indian edtech giant PhysicsWallah Limited has received partial relief in an ongoing tax dispute after authorities reduced its tax demand by more than Rs 70 crore.

The company said the Income Tax Department lowered the demand from Rs 263.34 crore to Rs 192.76 crore following a rectification application filed under Section 154 of the Income-tax Act. The revised order was issued on 13 April 2026 by the Assistant Commissioner of Income Tax in Noida.

The dispute relates to the assessment year 2023-24. The original demand had been raised under Section 143(3) of the Act, prompting the company to seek a revision.

In a regulatory filing, PhysicsWallah said that a rectification order under Section 154 reduced the earlier tax demand from Rs 263.34 crore to Rs 192.76 crore. However, a substantial portion of the tax liability remains under contention.

The company has now filed an appeal before the Commissioner of Income Tax (Appeals), stating that it has “strong legal and factual grounds” to challenge the remaining demand.

Despite the ongoing proceedings, the firm said the issue is not expected to have any material impact on its financial position, operations, or business activities.

While the company has not disclosed the full specifics of the dispute in this filing, it said it has challenged the remaining demand before the appellate authority and is seeking further relief.

The matter will now be reviewed by appellate authorities as the company seeks further relief.