ELSS Calculator
Calculate ELSS returns with tax benefits under 80C
ELSS Investment Details
Annual: ₹1,50,000 (80C limit: Rs 1.5L)
Historical ELSS returns: 10-15% p.a.
Minimum lock-in: 3 years
Tax Details
Your highest income tax slab rate
Under Section 80C (max Rs 1.5L deduction)
ELSS Returns
Enter ELSS details and click Calculate
See returns with tax benefits
Understanding ELSS (Tax Saving Mutual Funds)
What is ELSS?
ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests primarily in equity and equity-related instruments. It offers tax benefits under Section 80C of the Income Tax Act, making it a popular tax-saving investment option.
Key Features
- Lock-in Period: Shortest among 80C options - only 3 years
- Tax Deduction: Up to Rs 1.5 lakh under Section 80C
- Equity Exposure: Minimum 80% in equity and equity-related instruments
- Returns: Market-linked, historically higher than traditional 80C options
- SIP Option: Invest as low as Rs 500 per month
ELSS vs Other 80C Options
| Investment | Lock-in | Returns | Risk |
|---|---|---|---|
| ELSS | 3 years | 10-15%* | High |
| PPF | 15 years | 7.1% | Low |
| NSC | 5 years | 7.7% | Low |
| Tax-Saver FD | 5 years | 6-7% | Low |
| NPS | Till 60 | 8-10%* | Medium |
*Market-linked, past returns not indicative of future performance
Tax Treatment
- Investment: Deduction up to Rs 1.5 lakh under Section 80C
- Dividends: Taxable in hands of investor at slab rate
- LTCG: Gains above Rs 1.25 lakh taxed at 12.5% (Budget 2024)
- STCG: N/A as minimum holding is 3 years
Who Should Invest in ELSS?
- Investors looking for tax savings under Section 80C
- Those with a risk appetite for equity investments
- Young investors with a long investment horizon
- Anyone preferring shorter lock-in compared to PPF (15 years)
SIP in ELSS: Important Note
When you invest via SIP in ELSS, each installment has its own 3-year lock-in. For example, if you start a SIP in January 2024, the January 2024 installment unlocks in January 2027, February 2024 installment unlocks in February 2027, and so on.
Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.
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