The Income Tax department on Wednesday served notices to Flipkart founders' Sachin Bansal and Binny Bansal asking them to explain the capital gains after the deal with Walmart, said sources familiar with the matter.

Taxman has also served notice to 35 other investors of Flipkart, sources privy to the matter told CNBC-TV18, adding that Binny and Sachin are yet to reply to the notice.

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.

First Published:Nov 21, 2018 9:58 PM IST