India’s fast-growing edtech unicorn PhysicsWallah has come under regulatory scrutiny after receiving a ₹263 crore demand notice from the Income Tax Department. The development has raised fresh questions about financial compliance within India’s edtech ecosystem, even as the sector continues to navigate a post-pandemic slowdown and increasing investor pressure on profitability.
What the Notice Entails
According to sources familiar with the matter, the Income Tax Department has issued the notice following an assessment of PhysicsWallah’s financial filings. The demand is reportedly linked to discrepancies identified in tax computations, including potential issues related to revenue recognitio
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