Long-term capital gains tax, or LTCG

Capital gains mean the profit earned by an individual on the sale of his investment in assets such as stocks, real estate, bonds, commodities, etc. Basically, it is the 'gain' made on 'capital investment'. In some tax jurisdictions — a country, state or city — capital gains are taxed if an individual sells an asset after holding it for a certain 'long' period. This period is often twelve months. However, it could also be defined differently for various assets.