ELSS Calculator (Tax Saving Mutual Fund)

ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests at least 80% in equities. It qualifies for Section 80C tax deduction up to ₹1.5 lakh per year under the Old Tax Regime. With a 30% tax slab, investing ₹1.5L in ELSS saves ₹46,800 in tax. ELSS has the shortest lock-in period (3 years) among all 80C options.

ELSS offers higher potential returns (12-16% CAGR historically) vs PPF (7.1%). ELSS has only 3-year lock-in vs PPF's 15 years. However, PPF returns are guaranteed and completely tax-free (EEE status), while ELSS returns are market-linked and LTCG above ₹1.25L is taxed at 12.5%. For long-term, ELSS typically gives 2-3x more wealth despite being taxed.

No, Section 80C deduction is NOT available under the New Tax Regime (introduced in Budget 2020, made default in 2023). If you're on the new regime, ELSS gives no tax benefit. However, ELSS is still a good equity investment due to its 3-year forced SIP discipline. If you invest ₹1.5L+ in 80C, the old regime may still be better for you.

ELSS has a 3-year lock-in from date of each SIP installment (not from the first investment). Each monthly SIP has its own 3-year lock-in. After 3 years, units can be redeemed freely. This is the shortest lock-in among all Section 80C investments — PPF is 15 years, Tax FD is 5 years, NSC is 5 years.

Maximum ₹1.5 lakh per year (Section 80C limit). As SIP: ₹12,500/month. If you already have EPF (employer PF), that counts toward 80C too — check your remaining 80C room. For example, if employer EPF is ₹1.8L/year, you've already exceeded 80C and ELSS tax benefit is zero. Invest in ELSS for equity exposure, not tax saving in that case.