Sachin Bansal, founder and ex-CEO of e-commerce giant Flipkart has paid a whopping ₹699 crores in advance tax for the first quarter of 2018-2019. The amount includes tax for his capital gains from the recent sale of his stake in Flipkart to Walmart post the Walmart-Flipkart deal. Mr Bansal had a 5 per cent stake in Flipkart until early this year which earned him around ₹7,000 crores or $1 billion post the deal.
Sachin Bansal and Binny Bansal have been sent notices by the income tax department to disclose their capital gains from the transaction. The Income Tax Department served similar notice to Walmart too to ensure payment of withholding tax on capital gains. Earlier in 2018, Walmart paid ₹7,440 crores in tax after it acquired Flipkart at a valuation of $21 billion. Flipkart’s co-founder Binny Bansal is yet to disclose his capital gains.
If you want to know how Binny and Sachin started the e-commerce giant, you can read Flipkart’s startup story. Also, let me tell you that Sachin has been reported to looking for agritech and fintech startups to invest in. The amount that Sachin paid in tax i.e ₹699 crores can have helped around 699 startups (if he invested ₹1 crores in each of them). Also, if he invested $5 million in series A rounds of each startup, he could have helped around 20 startups to prosper.