Set-off of losses: new limits bar using business and capital losses to reduce salary and other non-capital income. Clause 109 permits set-off of losses under any income head except capital gains against income from other heads in the same year, subject to limits: ... Summary
Set-off of losses: new limits bar using business and capital losses to reduce salary and other non-capital income.
Clause 109 permits set-off of losses under any income head except capital gains against income from other heads in the same year, subject to limits: business losses cannot be set off against salary income; house property losses are set off against other heads only up to a capped amount; and capital gains losses cannot be set off against non-capital income. The clause thus confines capital losses within their category and imposes head-specific restrictions requiring careful tax planning and record-keeping.
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TaxTMI 
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