Computation of income

1.Yes,Business loss can be set off against capital gain.
2.No long term capital loss should be set off only against long tern capital gain and short term capital loss can be set off against either long or short term capital gain.It cannot be set off against salary.

q1....you can set off business loss against capital gains ....and you cannot set off if the said business loss is of speculative nature or business specified under sec 35AD

q2.....you cannot set off capital loss against income from salaries....capital loss can be set off only against capital gain and no other income ...

in the first case your income under the head capital gains will be 450000 and amount of long term and short term depends upon on which gain you set off and in the second case your salary income will be ₹ 12 lacs and you have to carry forward the capital loss of ₹4lacs (both long term and short term) for a maximum of 4 years from the year in which you incurred the loss

note: long term loss can be set off only by long term gain

Thanks a lot for your great advice and spending time in solving my query

1. Yes, Business loss can be set off against Capital Gains whether short term or long term.
2. Capital loss cannot be set off against Salary income.
Long term capital loss can be set off only against long term capital gain but Short term capital loss can be set off against any Capital gain

Thanks Neelima, Ashwin and Swarnamalya