What is Long term Capital Gain? What is Short Term Capital Gain?

Any Capital Gain on sale of a Capital asset that is held by the person for more than 36 months is Long Term Capital Gain. In case of equity or preference shares, securities such as debentures listed on a recognized stock exchange, or Units of the UTI or units of Mutual Fund specified under section 10(23D), Zero-coupon Bond, the said limit is 12 months instead of 36 months. 

If the Capital Asset is sold prior to completion of 36 months (or 12 months, as applicable), then Capital gain is termed as Short Term Capital Gain.