Tax has always been unpleasant for the profit-making traders, but India is great with cryptocurrency, they are not persistent in searching for loopholes in trade or investing in crypto.
Well they might find ways to circumvent this regulations but its a bigger risk that they have to make.
This is really too bad as it is a lose lose for any country that does this. There is no way they can really ban it and people with big money including those exchange will just end up moving overseas to a more friendly jurisdiction. South Korea tried something similar and then did a 180 once they saw that major exchanges were ready to move overseas.
That's the only options left for big Indian's exchanges. Move elsewhere to continue their business because the government is not very friendly.
Unfortunately now even LocalBitcoins[1] requires KYC. The best way for you to buy and sell bitcoin right now would be to look for buy and sell offers on probably social media, then straight up meet people to transact. Unfortunately global adoption also has some downsides: strict regulations.
[1]
https://localbitcoins.com/Ye, Recently LBC required KYC especially for high profile traders. Straight meet up to do bitcoin transaction will be the best choice, but the risk is there. I guess we all have to live with strict regulations, taxes and all sort of state revenues imposed if you want to be involve in crypto.