🇮🇳 ELSS · 80C Tax Saving
ELSS Calculator India 2025-26
ELSS is the only 80C investment that gives market-linked returns — historically 12–15% CAGR. Shortest lock-in of 3 years. Calculate your returns and tax savings here.
ELSS vs PPF vs NPS vs FD
| Feature | ELSS | PPF | NPS | FD (Tax Saver) |
|---|
| Returns | 12–15% CAGR* | 7.1% | 9–12%* | 6.5–7% |
| Lock-in | 3 years | 15 years | Till 60 | 5 years |
| 80C Benefit | Up to ₹1.5L | Up to ₹1.5L | Up to ₹1.5L | Up to ₹1.5L |
| Tax on Returns | 10% LTCG above ₹1L | Tax-free | 40% as annuity | Slab rate |
| Risk | Market risk | Zero | Market risk | Zero |
| Best for | Long-term wealth | Safe savings | Retirement | Capital safety |
*Historical average — not guaranteed. Past performance does not guarantee future returns.
💡 ELSS in new tax regime: 80C deduction is not available under the new tax regime. But you can still invest in ELSS as a regular equity mutual fund for wealth building — just without the 80C deduction. LTCG tax of 10% above ₹1L still applies.
How Much Tax Can You Save With ELSS?
ELSS is the only equity mutual fund category that qualifies for tax deduction under Section 80C. You can invest up to ₹1.5 lakh per year and reduce your taxable income by the same amount. The actual tax saved depends on your slab:
| Tax Slab | Investment (80C) | Tax Saved |
|---|
| 5% | ₹1,50,000 | ₹7,500 |
| 20% | ₹1,50,000 | ₹30,000 |
| 30% | ₹1,50,000 | ₹46,800* |
*Including 4% cess. ELSS has the shortest lock-in of any 80C option — just 3 years, versus 15 years for PPF and 5 years for tax-saving FDs. Note: Section 80C is only available under the old tax regime; under the new regime ELSS won't give a deduction but remains a strong equity option.
Frequently Asked Questions
What is ELSS and how does it work?
ELSS (Equity Linked Savings Scheme) is a tax-saving mutual fund investing primarily in equities. It qualifies for 80C deduction up to ₹1.5L/year. Minimum 3-year lock-in. Returns are market-linked — historically 12-15% CAGR over long periods.
What is the lock-in period for ELSS?
3 years — the shortest among all 80C instruments. PPF is 15 years, tax-saver FD is 5 years. For SIP investments, each monthly installment has its own 3-year lock-in from its investment date.
What is LTCG tax on ELSS?
ELSS gains are Long Term Capital Gains. LTCG up to ₹1 lakh/year is tax-free. Above ₹1 lakh taxed at 10% without indexation — far better than FD interest which is taxed at your full slab rate up to 30%.
Is ELSS better than PPF?
ELSS gives higher potential returns (12-15%) vs PPF (7.1%) with shorter lock-in (3 vs 15 years) but with market risk. PPF is risk-free and fully tax-free. Best: use PPF for safety + ELSS for growth together under 80C.
Can I invest in ELSS under new tax regime?
80C deduction is not available under new tax regime. But you can still invest in ELSS as a regular equity mutual fund for market returns without the 80C deduction.
For educational purposes. Mutual fund investments are subject to market risk. Past returns are not indicative of future performance.