ELSS Calculator
Calculate ELSS returns with tax savings under Section 80C. Lowest lock-in among tax-saving options.
Investment Details
80C Benefit: Up to ₹1.5 Lakh tax deduction. Lock-in: 3 years (shortest among 80C options).
Returns Summary
Year-wise Breakdown
| Year | Invested | Value | Returns | Tax Saved | Status |
|---|---|---|---|---|---|
| Year 1 | ₹60,000 | ₹64,750 | ₹4,750 | ₹18,000 | 🔒 Locked |
| Year 2 | ₹1.20 L | ₹1.39 L | ₹19,171 | ₹18,000 | 🔒 Locked |
| Year 3 | ₹1.80 L | ₹2.25 L | ₹44,705 | ₹18,000 | 🔒 Locked |
| Year 4 | ₹2.40 L | ₹3.23 L | ₹83,014 | ₹18,000 | ✓ Free |
| Year 5 | ₹3.00 L | ₹4.36 L | ₹1.36 L | ₹18,000 | ✓ Free |
| Year 6 | ₹3.60 L | ₹5.66 L | ₹2.06 L | ₹18,000 | ✓ Free |
| Year 7 | ₹4.20 L | ₹7.15 L | ₹2.95 L | ₹18,000 | ✓ Free |
| Year 8 | ₹4.80 L | ₹8.87 L | ₹4.07 L | ₹18,000 | ✓ Free |
| Year 9 | ₹5.40 L | ₹10.84 L | ₹5.44 L | ₹18,000 | ✓ Free |
| Year 10 | ₹6.00 L | ₹13.10 L | ₹7.10 L | ₹18,000 | ✓ Free |
Frequently Asked Questions
What is ELSS and how does it work?
ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests 65%+ in equities and qualifies for tax deduction under Section 80C. It has a 3-year lock-in period (shortest among 80C options). You can invest via SIP or lumpsum up to ₹1.5 Lakh per year for tax benefits.
What is the lock-in period for ELSS?
ELSS has a mandatory 3-year lock-in period - the shortest among all Section 80C tax-saving instruments. For SIP investments, each installment has its own 3-year lock-in. For example, a January 2024 SIP unlocks in January 2027, while February 2024 SIP unlocks in February 2027.
How much tax can I save with ELSS?
Under Section 80C, you can claim deduction up to ₹1.5 Lakh per year. Tax saved depends on your tax slab: 5% slab saves ₹7,500, 20% slab saves ₹30,000, and 30% slab saves ₹45,000 (plus cess). This makes ELSS attractive for high-income individuals.
Is ELSS return taxable?
Yes, ELSS returns are subject to Long Term Capital Gains (LTCG) tax. Gains up to ₹1.25 Lakh per year are tax-free. Gains above ₹1.25 Lakh are taxed at 12.5% (after Budget 2024). Since lock-in is 3 years, Short Term Capital Gains (STCG) doesn't apply.
ELSS vs PPF - which is better?
ELSS: 3-year lock-in, equity exposure (10-15% returns), market risk, LTCG taxable. PPF: 15-year lock-in, fixed returns (7.1%), zero risk, completely tax-free. Choose ELSS for higher returns with risk appetite; PPF for guaranteed, tax-free returns with longer commitment.
Can I withdraw ELSS before 3 years?
No, ELSS has a mandatory 3-year lock-in and cannot be withdrawn or redeemed before completion. This applies to each SIP installment individually. After 3 years, you can hold indefinitely or redeem partially/fully as per your financial needs.
SIP or Lumpsum - which is better for ELSS?
SIP is generally recommended as it provides rupee cost averaging and spreads investment across market cycles. However, for last-minute tax planning (January-March), lumpsum works. For ₹1.5L yearly investment, ₹12,500 monthly SIP is optimal. Each SIP has separate 3-year lock-in.
What happens to ELSS after 3 years?
After 3 years, your ELSS investment becomes an open-ended equity fund. You can: 1) Continue holding for further growth, 2) Switch to other funds, 3) Redeem partially or fully, 4) Continue SIP in the same fund. There's no compulsion to withdraw after lock-in ends.
Can NRI invest in ELSS?
Yes, NRIs can invest in ELSS through NRE or NRO accounts. However, tax benefits may vary based on their residential status and the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence. Consult a tax advisor for specific guidance.
What is the minimum investment in ELSS?
Minimum investment varies by fund house, typically ₹500 for SIP and ₹500-5,000 for lumpsum. There's no maximum limit, but Section 80C benefit is capped at ₹1.5 Lakh per year. You can invest more, but additional amount won't get tax deduction.
How to select the best ELSS fund?
Consider: 1) 5-year consistent returns, 2) Fund house reputation, 3) Fund manager experience, 4) Expense ratio (lower is better), 5) Asset under management (AUM), 6) Portfolio diversification. Don't chase recent top performers; check consistency across market cycles.
Can I claim 80C if I've already invested in EPF?
Yes, but the total 80C limit is ₹1.5 Lakh combined. If your EPF contribution is ₹1 Lakh annually, you can claim only ₹50,000 more through ELSS, PPF, or other 80C instruments. Plan your 80C allocation to maximize tax efficiency.