37. Where, in respect of any assessment year, the net result of computation of income under any head is a loss, the assessee shall, subject to the other provisions of this Ordinance, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head:

¹[²[Provided that any loss in respect of any speculation business or any loss under the head “Capital gains” shall be set off only against any income in respect of speculation business or any income under the head “Capital gains”:

Provided further that any loss from any source, income of which is exempted from tax or income of which is taxed at a reduced rate, shall not be set off against any income from any source:]

Provided further that for the purposes of this section the Deputy Commissioner of Taxes shall, in computing any loss, deduct any amount received in cash as subsidy from the Government³[:]

⁴[Provided further that any loss in respect of any income from business or profession shall not be so set off, or be carried forward to succeeding assessment year or years for set off, against any income from house property⁵[:

Provided further that any loss in respect of any income from any head shall not be so set off against any income from manufacturing of cigarette ⁶[, bidi, zarda, chewing tobacco, gul or any other smokeless tobacco or tobacco products].]]