set off og short term capital gain

 Unabsorbed Depreciation

  Depreciation which remains unadjusted as either there is no income or less income in the relevant previous year, it can be carried forward till it is fully adjusted from any income during the succeeding previous years. It shall be treated as depreciation of the succeeding previous year.

In case there is C/F business as will as C/F unabsorbed depreciation, then his following order should be followed for set off.

(t) Firstly Current depreciation

(u) Secondly Brought forward business loss

(iii) Thirdly Brought forward/unabsorbed depreciation.

 Loss under the head capital gains

(1)       It can be carried forward for 8 succeeding previous yeats to be set off only from income under 
the head capital gains in following manner:

(a) Short term capital loss can be set off from either short term capital gain or long term capital gain.

(b) Long term capital loss can be set off only from long term capital gain

(2)       No loss under the head Capital Gain shall be carried forward for more than 8 assessment years succeeding the assessment year in which such loss wa first computed. Section 74 (2)

There is no particular section in this case..