Banning is not possible in a legal manner? How do you say that? What is legal or illegal is decided by the parliament itself and if it wants to declare something illegal it definitely can. Nothing can really stop that unless you are violating the constitution itself which too anyways can be ammended. I think you didn't get my point. My point was if government is going to levy TDS on every crypto transaction they are indirectly making trading futile exercise hence banning bitcoin in an indirect way.
My views are on the government's role. As laws are made or changed in parliament only. So considering the government's stance on crypto, they have no proposal for legalization. But at the same time government knows how big volume assets are involved in crypto.
Many countries including India, have no control over Bitcoins production, no control over Bitcoins Distribution, even no control over Bitcoins Price fluctuation, still countries like India trying to bring it under taxation. What to say?
Already there are other ways to bypass 30% taxes on crypto. But according to laws for fiat, persons have to pay taxes accordingly.