Intra-head loss set-off permits netting within an income head, subject to capital-loss and specified-loss restrictions.

Intra-head set-off allows loss from one source to be adjusted against income from another source under the same head, subject to special restrictions. Short-term capital loss may be set off against any capital gain, whereas long-term capital loss may be set off only against long-term capital gains. Restrictions apply to speculation-business losses, race-horse activity losses, specified-business losses, exempt-income source losses, and losses from lotteries, card games and similar winnings. Bonus-stripping and dividend-stripping provisions are also identified as applying to securities, units, REITs, InVITs and AIFs.

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