Which Losses Can Be Adjusted With Salary Income?

There are five heads of income -salary, house property, business, capital gains and other sources. Out of these heads, losses may be incurred in any head except Salary. The question is, whether any loss incurred in any head other than Salary be adjusted with the Salary income?
The provision regarding adjustment of losses incurred in a year within different heads is given in section 71 of the I T Act. It provides that following losses only can be adjusted with salary

1.    loss from house property

2.    Loss from other sources if any.
Business loss was , previously be allowed to be adjusted with Salary income but it was so much mis-utilised that from Assessment year 2005-06, the adjustment was withdrawn by insertion of sub-section 2A under section 71 which reads as under
(2A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head Profits and gains of business or profession is a loss and the assessee has income assessable under the head Salaries, the assessee shall not be entitled to have such loss set off against such income.
Similarly ,capital loss -whether short term or long term- is not allowed to be adjusted with other head of income.

(3) Where in respect of any assessment year, the net result of the computation under the head Capital gains is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to have such loss set off against income under the other head.