It is allowed in all cases except the following −


(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]  


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.