It is allowed in all cases except the following −

Exceptions

(1) Loss from capital gains cannot be adjusted against income from any other head

     [Both STCL & LTCL carry forward, no adjustment allowed]

(2) Loss from business can’t be adjusted against income from salaries.

(3) Loss of speculation business

(4) Loss from specified business under section 35AD

(5) Loss from business of owning & maintaining race horses

(6) Loss from lottery / cross word puzzle games etc.

(7) Loss from exempt source

 [If income is exempt its loss to be ignored, and can’t be setoff or carry forward]  

 

  1. Income Tax
  2. Set off and Carry Forward of Losses
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 7 years. He provides courses for Mathematics and Science from Class 6 to 12. You can learn personally from here https://www.teachoo.com/premium/maths-and-science-classes/.
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