37.  Capital losses.-

Where an assessee sustains a loss in any assessment year under the head "Capital gains", such loss shall be carried forward to the following assessment year and set-off against the capital gains chargeable for that assessment year under the said head, and if it cannot be set-off in this manner, the amount of the loss not so set-off shall be carried forward to the following assessment year, and so on, but no loss shall be carried forward for more than six assessment years immediately succeeding the assessment year for which the loss was first computed:

Provided that where the loss sustained by any assessee in any income year does not exceed five thousand rupees, it shall not be carried forward and, where it exceeds five thousand rupees, only so much of such loss shall be carried forward as exceeds five thousand rupees:

Provided further that as respects the assessments for the years beginning on the first day of July, 1975 and ending on the thirtieth day of June, 1984, this section shall have effect as if the assessment year beginning on the first day of July, 1984 were the next following assessment year to any assessment year ending at any time between the thirtieth day of June, 1975, and the thirtieth day of June, 1983 and the first proviso were omitted:

Provided further that as respect the assessments, in respect of loss arising from sale of shares of a public company (as defined in the First Schedule), for the years beginning on the first day of July, 1984, and ending on the thirtieth day of June, 1989, this section shall have effect as if the assessment year beginning on the first day of July, 1989, were the next following assessment year to any assessment year ending at any time between the thirtieth day of June,1984, and the thirtieth day of June, 1988, and the first proviso were omitted.