Binny and Sachin Bansal gets notice from income tax month after exit

NP NEWS 24 ONLINE – The Income Tax Department has issued notices to Flipkart founders Binny and Sachin Bansal to disclose their total income from the Walmart-Flipkart deal.

Tax notices were sent to the co-founders on October 18, asking them to explain the total payment received from the sale of their venture to Walmart, the capital gain tax liability and how the tax payments have been scheduled.

“There was a query received with regard to the sale of shares and payment of advance taxes. It happened a few months ago and I had already responded to the same,” the recently resigned group CEO and chairman of Flipkart told.

In May, global retail giant Walmart acquired a 77 per cent stake in Bengaluru-based online retailer for $16 billion as it forayed into India’s exploding e-commerce market.

Earlier, the I-T Department had served notice to Walmart asking it to furnish details of 46 shareholders of Flipkart, and how much each of them gained from the deal.

The Bansals have not responded to the I-T notice sent to them on October 18, while responses of other Indian shareholders have started pouring in While short-term capital gains tax of a maximum of 40% may be applicable on SoftBank, eBay will also have to pay short-term capital gains tax but its rate of tax is likely to be 20% considering the DTAA with Singapore.

The tax department is yet to calculate the actual tax applicable since it is still investigating some alleged suspicious transactions and investment flow in the company.