Loss set-off rules restrict losses to be set off only within the same income head, with capital gains segregated.

Set-off of losses is confined to incomes within the same head: losses from sources other than Capital gains may be set off against income from any other source under the same head. Short-term capital losses may be set off only against income from other short-term capital assets; losses from capital assets that are not short-term may be set off only against income from other non-short-term capital assets.

---

---

---