How income from stock options earned in India is taxed for US resident?

Your bank account linked is Indian, so it is taxed here through tcs at 0.1% for Indian equity stock options.

Do you mean broker account?

Most likely I have will NRE bank account.

And will it be treated as business income/loss?

Thank you !

Yes the bank, where will the sales value be credited?

It is business income. 

Thank you very much!