After IT notice, Sachin Bansal deposits Rs 699 Cr advance tax on Flipkart's gain

Soon after Income Tax department's notice to Flipkart founders to divulge the information regarding capital gains they made through the Flipkart-Walmart deal, Sachin Bansal has deposited Rs 699 crore as advance tax for the first quarter of 2018-19.

The other co-founder Binny Bansal has not disclosed the capital gains he made through selling his stakes. Both had owned about 5 per cent stake in the firm each and were expected to make more than $1 billion each out of the deal.

As of now, Walmart has paid Rs 7,439.4 crore as retention tax in September this year. The US-based retail giant was asked to pay a withholding tax of about $2 billion for the deal.

The IT department also sent notice to 46 shareholders of Flipkart regarding the capital gains they made through the $16 billion deal.

In the latest tax structure, a short-term capital gain tax of a maximum of 40 per cent may be applicable on SoftBank. Besides, eBay will also have to pay short-term capital gains tax but at a slashed rate of 20 per cent due to double taxation avoidance agreement with Singapore.

eBay made investments in Flipkart through a network of companies registered in various jurisdictions. The San Jose-based e-commerce company had a 5.4 per cent stake in Flipkart which it later sold in about $1.1 billion.

Of late, Sachin Bansal is also back in action with his second gig in entrepreneurship. He has teamed up with investment banker Ankit Agarwal and registered his new firm, BAC Acquisitions Private Limited. Besides, he is also planning to raise a $1 billion startup focused fund.

The development was reported by ET.