Agreed that it should be taxed as business income , same as F&O.
Regarding forex trading this should help : -Open an online share trading or forex trading or currency trading account whose registered Regulatory office is based anywhere out side Indian Jurisdcition. Then open an International Personal Banking Account in the same country bank where you hold trading account and I would like to say that it is allowed as per the LRS scheme FAQ point number 36 mentioned on https://www.rbi.org.in/scriptttts/FAQView.aspx?Id=53
Once you open a trading account AND also an international personal banking account in jurisdiction which falls outside India, then you can first of all send the money to you international personal banking account using the LRS scheme. Then from that bank account simply transfer to your trading account which is also in the same country and does not falls in Indian Jurisdiction. This is the way and legal way to do forex trading using the LRS scheme and within legal limits.
Also ICICI securities is offering forex trading to share trading clients
PS : pls do your homework , i dont practise RBI regs or fema