1. Set Off and Carry Forward of Losses

2. Set Off of Losses Inter Source Set Off Exceptions to this rule are-:
Speculation Loss
Loss from Specified Business referred to in Section 35AD
Long Term Capital Loss
Loss from owning and maintenance of race horses

3. Loss from an exempted source of Income
Loss in respect of Casual income falling
Any loss cannot be set off against casual income
INTER HEAD SET OFF
Speculation Loss
Loss under the head capital gains
Business loss not to be set off from Salary Income

4. Set Off of Losses from Casual Income falling u/s 56 (2) (ib)
Loss in respect of Casual Incomes falling under section 56(2) (ib)
Loss from a source whose income is exempted
Share of Loss from Firm/AOP

5. Carry Forward and Set Off Losses
Carry Forward of Loss under the head House Property
Carry Forward of Non-speculation “Business Loss”
Carry Forward of “Speculation Business Loss”
Carry Forward of Loss under the head “Capital Gains”
Carry Forward of loss from activity of owning and maintaining race horses
Unabsorbed Depreciation