Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization.
They didn't allow their financial system engage yet in cryptocurrency although the Reserve Bank of India tends to push forward for crypto ban but unsuccessful, the main idea is that india never declare bitcoin a ledger tender and their citizens were not ban from engaging in the use of cryptocurrency, the mastery they only exhibit is over the 30% tax imposition. I also believe after several years of thorough observations on bitcoin and still found outstanding with a maintained standard, possibly their iota of doubt could have been clarified in accepting bitcoin as a legal tender.