LTCG stands for Long-Term Capital Gains — the profit you make from selling an asset that you held for longer than a specified minimum period, which varies by asset type. For listed equity shares and equity mutual funds, that period is more than 12 months; for most other assets like debt funds, gold, or property, it's typically more than 24 or 36 months, depending on the asset.
Long-term gains generally enjoy a lower, more favourable tax rate compared to short-term gains, as a way of rewarding investors who hold their investments patiently rather than trading frequently. For equity and equity mutual funds, LTCG above a certain exemption threshold each year is taxed at a flat rate, without the benefit of indexation. Understanding the LTCG holding period for each asset type can help you time a sale to reduce your tax outgo.