Rules A: Set off of losses – Intra head adjustments (Inter source adjustments)
Loss from one source of income can be adjusted against income from some other source of income under the same head.
It is subject to the following exceptions
1. Loss from speculation business cannot be set of against profit from an non speculation business
(Interpretation: Loss from non speculative business can be set-off against speculation income)
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Profits & gains from Business or Profession income includes speculation income.i.e. Business income is divided into Speculation & non speculation income.