The Income Tax department has issued notices to Flipkart founder Sachin and Binny Bansal (not related), seeking details of income earned from the total payment received from the sale of their venture to Walmart.
The Income Tax department has issued notices to Flipkart founder Sachin and Binny Bansal (not related), seeking details of income earned from the total payment received from the sale of their venture to Walmart, PTI reported citing an unidentified official. Bansals who hold a stake of over 5 percent each in the homegrown e-commerce site are Indian residents and liable to pay 20 percent income tax on the capital gains made from the stake sale, according to the Income Tax laws.
“As part of studying the Walmart-Flipkart deal, the international taxation division had written to Sachin and Binny Bansal asking them where they are assessed and where they would be filing their taxes. Since they file their income tax returns in Bangalore, the Assessing Officer there would now be in touch with them,” PTI reported citing an unidentified official.
Both are required to deposit advance tax on the assessed income from the deal with the government, according to the tax law. Nearly 75 percent of that tax has to be deposited by December 15, 2018, and the remaining by March 15, 2019.
Earlier in August this year, global e-retailer Walmart purchased 77 percent stake for $16 billion in Flipkart. Already, Rs 7,439 crore tax has been deposited for buying out stake from 44 foreign shareholders in Flipkart, since a substantial value of the e-commerce giant’s shares is being derived from India.
Meanwhile, n a dramatic turn of events, co-founder of Flipkart Binny Bansal chose to step down from his position as CEO of the e-retailer, US retail giant Walmart said in a regulatory filing on Tuesday. The decision followed an independent investigation into an allegation of ‘serious personal misconduct’.