Section 80C · 3-Year Lock-In · Tax Saving

ELSS Calculator —
Tax Saving + Wealth Creation

Calculate ELSS returns and tax savings. ELSS (Equity Linked Savings Scheme) offers 80C deduction up to ₹1.5 lakh with the shortest lock-in of any tax-saving instrument.

ELSS has the shortest lock-in (3 years) among all 80C instruments, offers equity-level returns, and only ₹1 lakh LTCG is tax-free per year. This calculator shows your post-tax real gain.
ELSS Investment Details
Annual ELSS Investment
1,50,000
₹500₹1.5L (80C max)
Expected Annual Return
14% p.a.
8%25%
Investment Duration
10 yrs
3 yrs (min)30 yrs
Your Tax Slab
30%
5%30%
Total Corpus at Maturity
₹0
gross corpus before LTCG tax
Total Invested
₹0
Wealth Gained
₹0
Tax Saved (80C)
₹0
Net Post-Tax Corpus
₹0
Invested vs Returns0%
InvestedReturns
ELSS Corpus Growth
Year-by-Year ELSS Growth
YearInvested (₹)Returns (₹)Corpus (₹)Tax Saved (₹)

ELSS — Tax Saving Mutual Fund Explained

What is ELSS and how does it save tax?+
ELSS (Equity Linked Savings Scheme) is a type of mutual fund that qualifies for Section 80C deduction under the Income Tax Act. Investments up to ₹1,50,000 per year are deductible from taxable income, saving ₹46,800 in tax (at 30% slab including cess) annually. ELSS invests primarily in equities and has a mandatory 3-year lock-in from each investment date — the shortest lock-in among all 80C instruments (PPF has 15 years, NSC has 5 years).
ELSS vs PPF vs NPS — which 80C option is best?+
Each serves a different purpose. ELSS: Highest return potential (12–18% CAGR), only 3-year lock-in, LTCG tax at 10% above ₹1L. Best for investors under 45 with long horizon and equity risk tolerance. PPF: Government-backed, 7.1% guaranteed, fully tax-free (EEE), 15-year lock-in. Best for risk-averse investors and debt component of portfolio. NPS: Extra ₹50,000 deduction via 80CCD(1B), equity exposure up to 75%, locked till 60. Best for additional deduction beyond ₹1.5L. Optimal strategy: ELSS first, then NPS for extra ₹50K deduction, PPF for guaranteed safe returns.
What is the LTCG tax on ELSS?+
ELSS gains are classified as Long-Term Capital Gains (LTCG) since the lock-in ensures minimum 3-year holding. LTCG from equity funds is taxed at 10% on gains exceeding ₹1 lakh per financial year (Budget 2018 change). So if your ELSS SIP builds ₹5 lakh in gains in one year, ₹1 lakh is tax-free and ₹4 lakh is taxed at 10% = ₹40,000 LTCG tax. Strategic redemption spread across years can minimise this.
Which are the best ELSS funds in India 2026?+
Top ELSS funds based on consistent long-term performance (not a recommendation, verify before investing): Mirae Asset Tax Saver, Axis Long Term Equity, Quant Tax Plan, Canara Robeco Equity Tax Saver, DSP Tax Saver. Evaluate funds by 5-year and 10-year CAGR, consistency with benchmark, and expense ratio. Prefer direct plans over regular plans (0.5–1% lower expense ratio). Use an index-based ELSS if available in your platform for lower cost.
Should I invest lumpsum or SIP in ELSS?+
SIP is recommended for ELSS for two reasons: (1) Rupee cost averaging reduces timing risk. (2) Each SIP instalment starts its own 3-year lock-in, giving you rolling liquidity (SIPs from 3 years ago are always unlocked). Lumpsum in ELSS makes sense in January–March (tax season) if you haven't invested earlier — but be aware the full lumpsum is locked for 3 years. For maximum flexibility and rupee cost averaging, monthly SIP is the preferred approach.