- Wealth PMS
Long term capital gains (LTCG) applies when you profit from a "capital asset", in this context meaning something that involves a long term investment, sold after a long period of time. For stocks and mutual funds, the minimum period between purchase and sale is 1 year. For property or most other asset types it is three years. (If you buy and sell within this period, SHORT term capital gains applies, that's a different concept.)
The government had decided that it will reward you for making long term investments, so tax on long term gains is generally lower than the . . .