Sachin Bansal, the founder of Flipkart, has sold his entire stake in the company after Walmart decided to shell out $16 billion for the ecommerce giant. Bansal had a share of 5.2% left in the company he helped found along with Binny Bansal. That stake sale has made Sachin Bansal a fortune as it is expected to fetch him around $1.2 billion.

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While it's a one of a kind success story in the Indian startup ecosystem, Sachin Bansal will have to shell out a lot of money in order to fulfill his income tax obligations in India. It is being reported that Bansal will need to pay 20% capital gain tax on the fortune he just made by selling Flipkart. This comes to around a whopping figure of Rs 1600 crores.

"Despite the fact that shares of Flipkart Singapore (a company registered outside India) will be transferred to Walmart, gains arising from such transfer could be subject to tax in India considering that substantial value of such shares is being derived from India," Nangia, an expert in the matter said.

"With regard to share purchase agreement entered into with India resident entity, Sachin Bansal and Binny Bansal in this case, capital gain would be charged in their hands and they have to pay 20 per cent income tax," Transaction Square Founder Girish Vanvari told PTI.

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While Sachin has decided to leave, Binny will continue to serve as the group CEO and might as well be appointed as the next Executive Chairman.