Physicswallah Receives Rs 263.34 Crore Income Tax Demand Notice
Physicswallah Receives Income Tax Demand Notice of Rs 263.34 Crore
Key Highlights
- Physicswallah, an edtech firm, has received a tax demand notice of Rs 263.34 crore for the assessment year 2023-24.
- The Income Tax Department has treated investments received by the company from investors, including SEBI-registered Category II Alternative Investment Funds (AIF), as taxable income.
Company Response
Physicswallah plans to challenge the assessment order, citing strong legal and factual grounds to file an appeal before the appropriate appellate authority.
Financial Performance
In the December quarter, Physicswallah reported a 33% increase in consolidated profit to Rs 102.27 crore. Revenue from operations also grew by 33% to Rs 1,082.41 crore, up from Rs 809.67 crore in the same quarter last year.
Market Reaction
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Shares of Physicswallah settled 7.87% higher at Rs 86.81 on the BSE on Wednesday.
Investor Takeaway
Investors should be cautious of potential tax implications on investments in edtech firms like Physicswallah.
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