What is the difference between long-term capital gain and short-term capital gain?

When a property has been withheld by a person for more than three years, Long Term Capital Gain (LTCG) results in the sale of that property, on which Capital Gain Tax can be saved by investing that money in a residential real estate. When a property is postponed for fewer than 36 months by a taxpayer, this results in short term capital gain (STCG) from which tax cannot be avoided. STCG is applied to a person’s income and tax is determined based on the Income Tax slab thresholds.