When a property is withheld by a person for more than three years, it results in Long Term Capital Gain (LTCG) on sale of that property, on which Capital Gain Tax can be saved by investing that money in a residential property. When a property is withheld by a person for less than 36 months, it results in Short Term Capital Gain (STCG) on which tax cannot be saved. STCG is added to the income of a person and tax is calculated according to the slab rates of the Income Tax.