Inter-head loss set-off permits same-year adjustment, while capital, salary, house-property and special-source restrictions govern eligibility.

Inter-head set-off allows losses under one income head to be adjusted against income under another head in the same tax year, subject to restrictions. Non-capital losses may generally be adjusted against other income, but business loss cannot reduce salary income. House-property loss may be adjusted against other heads only up to the prescribed annual limit. Capital loss cannot be set off against income under other heads. Speculative business, specified-business and race-horse losses are confined to their respective income sources, and carried-forward losses cannot receive inter-head adjustment.

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