Can you use cryptos to start up overseas?

Using cryptocurrencies to subscribe to shares in a foreign company qualifies as a transfer of a VDA—making it a taxable event in India.

- Harshal Bhuta

Such transfers attract a flat 30% tax (plus applicable surcharge and cess) on any gains made from the transfer of cryptocurrency. Deductions are strictly limited—only the original cost of acquisition can be claimed, while other expenses such as exchange or transaction fees are not permitted. Moreover, if the transaction results in a loss, that loss cannot be set off against any other income, nor can it be carried forw