Long Term Capital Gains Tax, often known as LTCG Tax, is a tax applied on the profit made by an asset kept for an extended length of time. According to government regulations, the length of holding to be defined as "long term" or "short term" differs by the asset. It should be noted that there are various sorts of capital gains. In the case of property, for example, the asset may be considered "long term" only if kept for three years* or longer; in the case of stocks, the limit may be set at one year*. The gain or profit from selling the asset is categorized as capital gain, and as such, it must be taxed in the year in which the asset transfer occurs.
In other words, When somebody makes an investment, it is generally with the intention of profiting from it. Some investments will produce returns in a short period of time, while others will generate returns over a longer period of time. These are referred to as long-term capital gains.
Note - These gains and losses are applicable till 31st march 2022