Whenever there is a big flow of cash, the taxman is always there to collect his dues. Same was the case with Sachin Bansal when he sold of his 5% stake in India’s largest e-commerce website Flipkart to Walmart.
699 Crores of Tax?
Sachin Bansal reportedly paid the sum of Rs. 699 crore as Advance Tax for the first quarter of 2018-19. This sum includes the tax he had to pay for his Capital Gains by selling off his stake in the company he co-founded, Flipkart.
Yes, you heard that right!
The Tax Department had sent notices to Sachin and Binny Bansal and Walmart to disclose their capital gains through this transaction. Sachin sold off his 5% in Flipkart for an approximate amount of $1 Billion (Rs.7,000 crore). While Sachin has already cleared his dues with the Tax Department, Binny Bansal is yet to disclose off his capital gains from the sale.
A new company: BAC Acquisitions
After the sale, Sachin Bansal registered a new company called BAC Acquisitions. The goal of the company seems to be of investing in and acquiring Indian start-ups. Rumors suggest that Sachin will be investing around $100 million in the cab-hailing company Ola. The amount is nearly the same that he is paying as Tax.
Also Read: Flipkart Co-Founder Sachin Bansal Back In Action: Registers A New Startup
It’s a big thing!
What is clear is that Rs. 699 crore as tax is a big thing for young, self-made billionaires in India. If the average angel round of funding for a start-up in India is to be Rs. 1 crore, then Sachin could have invested in 699 such companies. That money amounts to $100 million, that could have been invested in nearly 20 $5 million start-ups as Series A funding.
But personally, Sachin does not seem to be affected by the Tax he paid. After becoming one of the most successful entrepreneurs in India and revolutionize the Indian e-commerce market, Sachin seems to be in a laid-back mood, taking long walks and playing computer games with his son.
But with all this, even this self-made billionaire thinks that one cannot escape from two things in life- death and taxes.
