What is ELSS?
ELSS (Equity Linked Savings Scheme) is a mutual fund category that qualifies for a tax deduction of up to ₹1.5 lakh per year under Section 80C of the Income Tax Act, 1961.
Tax Savings Calculator
| Tax Bracket | Investment | Max Tax Saved |
|---|---|---|
| 20% slab | ₹1,50,000 | ₹31,200 |
| 30% slab | ₹1,50,000 | ₹46,800 |
ELSS vs Other 80C Options
| Option | Lock-in | Returns* |
|---|---|---|
| ELSS | 3 years | Market-linked (~12–15%) |
| PPF | 15 years | 7.1% fixed |
| NSC | 5 years | 7.7% fixed |
| 5-yr FD | 5 years | 6–7% taxable |
*Historical indicative. Not guaranteed.
Key Rules for ELSS SIP
- Each SIP installment is locked for 3 years from its own investment date
- Cannot redeem before 3 years under any circumstances
- LTCG beyond ₹1L/year taxed at 10%
- Choose Direct Plan to save on expense ratio
Disclaimer: Tax laws subject to change. Consult a tax advisor. Mutual Fund investments are subject to market risks.