Correctly said! It is not a legal tender in India means you can not use bitcoin to pay for services and goods you purchase from an Indian citizen. But they haven't ban it either because they simply don't have the infrastructure to do so. Even if Indian government bans bitcoin, people will still use it but the ultimate looser will be the government because they will loose out on tax part.
On the other hand, if the government legalize it, it will have to be considered as a legal tender which may bring significant outrage from the banks who are supporting the development of India through funding.
So the government has taken a midway. They have kept the window open for the willing taxpayers. This way they will not loose a significant amount on taxes as well as pacify the banks. But that's a temporary arrangement. The government is still waiting for the final report and recommendations from the committee they have formed to decide the impact of Cryptocurrency on India's economy.
Exactly, this midway path chosen by the Indian Government is just a temporary decision. While the final decision is yet awaited. That's for sure the government of India won't ever want to lose on the extra income in the form of taxes, so banning it totally would not be smart move, of course. Accepting the bitcoin as a medium of exchange in the country would be a big step and since India is yet not a developed county and it is a developing country, I don't think such a big decision would be taken in great haste!! On the other hand, if the government legalize it, it will have to be considered as a legal tender which may bring significant outrage from the banks who are supporting the development of India through funding.
So the government has taken a midway. They have kept the window open for the willing taxpayers. This way they will not loose a significant amount on taxes as well as pacify the banks. But that's a temporary arrangement. The government is still waiting for the final report and recommendations from the committee they have formed to decide the impact of Cryptocurrency on India's economy.
