Carry forward of capital loss limited to adjustment against capital gains, subject to classification and timely return filing. Unadjusted capital loss can be carried forward and thereafter set off only against income chargeable under the head Capital gains. Long term capital loss is adjustable only against long term capital gains; short term capital loss is adjustable against either short term or long term capital gains. Carryforward is available for a statutory limited period from the year of loss, and losses are eligible for carry forward only if the return of income for the year of loss is filed on or before the due date under section 139(1).