Set off of losses across income heads clarified: non-capital losses can offset capital gains, but capital losses cannot.

Section 71 permits set off of losses arising under heads other than Capital gains against income under any other head for the same assessment year; if non-capital losses arise and the assessee also has Capital gains, those non-capital losses may be set off even against Capital gains (short-term or other). However, a loss under the head Capital gains cannot be set off against income under other heads.

---

---

---