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retail | IST

IT department serves notices to Flipkart founders Sachin and Binny Bansal

The Income Tax department has sent notices to Flipkart founders -- Sachin Bansal and Binny Bansal -- asking them to disclose their income after inking a deal with US retailer Walmart earlier this year, multiple sources aware of the developments said.

The Income Tax department has sent notices to Flipkart founders -- Sachin Bansal and Binny Bansal -- asking them to disclose their income after inking a deal with US retailer Walmart earlier this year, multiple sources aware of the developments said.
"The income tax department had sent notice to 35 investors of Flipkart on October 18, including Sachin and Binny Bansal," said one of the source on condition of anonymity.
The development comes just days after group CEO Binny Bansal’s exit. Bansal resigned earlier last week following allegations of sexual assault that dates back to a few years.
According to the sources, the tax department, in its notice, has asked Sachin and Binny Bansal to explain: "How much proceeds they earned from the Walmart-Flipkart deal? How much is the capital gains that they assess from these proceeds? And most importantly, how will they pay the tax dues?."
Walmart acquired about 77 percent of Flipkart in May, for nearly $16 billion in what was the US retail giant's largest-ever deal and a move to take on arch rival Amazon in a key growth market.
Not just the two Bansals, but 35 other investors too have also been asked to share details on capital gains, said the sources.
The tax department had served these notices on October 18 and some of the investors have already sent their replies. However, no response has come in as yet from Sachin Bansal and Binny Bansal, said the sources.
Last week, the Enforcement Directorate told the Delhi High Court that it was investigating whether e-commerce giants Amazon and Flipkart have violated provisions of foreign exchange law.
It has claimed that by creating name lending companies, Amazon and Flipkart buy branded goods in bulk at discounts from manufacturers and render small sellers uncompetitive by a wide margin, thus influencing the prices in violation of the FDI norms.
 
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