(1) Unless provided otherwise in this Act, for any tax year, if net result of computation from any source under any head of income (other than “Capital gains”) is a loss, then assessee shall be entitled to set off such loss against his income from any other source under the same head for that tax year.
(2) Any loss, as a result of computation made under sections 72 to 90, for any tax year, arising from transfer of a capital asset as arrived at under a similar computation made for the tax year in respect of any other capital asset being,––
(a) a long-term capital asset, shall be set off only against gains, if any, from transfer of another long-term capital asset; and
(b) a short-term capital asset, shall be set off against gains, if any, from transfer of any capital asset.