A holiday is a special day for religious or cultural reasons - such as Christmas, Easter, New Year's Eve, and your country's Independence Day. Some holidays are also official days off from work, and others are not.
A vacation is when you take multiple days off from work/school to relax and/or travel. However, American English speakers call this a vacation and British English speakers call this a holiday:
My parents are on vacation in Asia. (American English)
My parents are on holiday in Asia. (British English)
The harvest festival in Punjab is celebrated in form of Lohri and is an auspicious occasion celebrated with great fervour in typical Punjab style. This festival is particularly celebrated by farmer fraternity because of their connection with harvesting. It is assumed to be quite similar to Thanksgiving Day celebrated in USA and Canada. During the festival people offer prayers and thanks to the God. This symbolifies thanking God for being so kind and bringing prosperity for all. Mainly the North Indian states like Punjab, Haryana, Delhi and parts of Himachal Pradesh celebrate this occasion.