Arun Jaitley ,Minister of finance of India held a meeting to discuss bitcoins , but could not come to decision.
If they decide to regulate bitcoin then 10% tax will taken on purchase and income.
Back in 2013 government raided a bitcoin exchanges and transaction halted for months and two months ago Reserve Bank Of India warned that bitcoin could come into money laundering laws.
http://www.businessinsider.com/why-bitcoin-could-thrive-in-a-country-like-india-2017-6?IR=T