ELSS Calculator — Tax Saving Mutual Fund Calculator
Calculate ELSS tax-saving mutual fund returns with Section 80C benefit. See LTCG tax impact, lock-in period tracking, and net returns after tax. Free ELSS calculator India.
ELSS Calculator
Tax-saving mutual fund returns
ELSS Returns & Tax Savings
Maturity Value
₹10,90,009
Total Invested
₹7,50,000
Est. Returns
₹3,40,009
Section 80C Tax Savings
Annual Tax Saved
₹45,000
Total Tax Saved
₹2,25,000
80C eligible: ₹1,50,000/year (max ₹1.5L)
Gains above ₹1.25L taxed at 12.5%. Exemption: ₹1,25,000
Investment vs Returns
What is ELSS?
ELSS (Equity Linked Savings Scheme) is a type of equity mutual fund that qualifies for tax deduction under Section 80C of the Income Tax Act. It has the shortest lock-in period among all 80C options — just 3 years.
ELSS vs Other 80C Options
- ELSS: 3-year lock-in, 12-15% returns (equity)
- PPF: 15-year lock-in, 7.1% returns (guaranteed)
- NSC: 5-year lock-in, 7.7% returns (guaranteed)
- FD (Tax Saver): 5-year lock-in, 6-7% returns
- NPS: Till retirement, 8-10% returns (market-linked)
ELSS offers the highest potential returns with the lowest lock-in periodamong all Section 80C options, making it the preferred choice for tax-saving.
ELSS Tax Benefits
Section 80C Deduction
Investment up to ₹1,50,000 per year in ELSS qualifies for tax deduction under Section 80C. At the 30% tax slab, you save up to ₹46,800 (including 4% cess) per year.
LTCG Tax on ELSS
- Gains up to ₹1,25,000 per year are tax-free
- Gains above ₹1.25L taxed at 12.5% (LTCG)
- No STCG as lock-in is 3 years (always LTCG)
SIP in ELSS
Each SIP installment has its own 3-year lock-in. So a January 2024 SIP unlocks in January 2027, February 2024 SIP in February 2027, and so on. This creates a staggered redemption schedule.
Frequently Asked Questions
Is ELSS risky? Can I lose money?
ELSS invests in equities, so there is market risk. However, the 3-year lock-in protects you from panic selling during downturns. Historically, equity markets have delivered positive returns over 3-year periods about 85% of the time. For risk reduction, invest via SIP.
Can I invest more than ₹1.5 lakh in ELSS?
Yes, you can invest any amount in ELSS, but tax deduction under Section 80C is capped at ₹1.5 lakh per financial year. Any additional investment will grow tax-free (LTCG up to ₹1.25L) but won't provide extra tax deduction.
What happens after the 3-year lock-in?
After the lock-in, your investment becomes an open-ended equity fund. You can redeem (partially or fully) or stay invested. There is no compulsion to redeem. Continuing your investment means your money keeps compounding for higher returns.
Which is better — ELSS SIP or Lumpsum?
SIP of ₹12,500/month covers the full ₹1.5L annual 80C limit. SIP reduces market timing risk and enforces discipline. Lumpsum is better if invested early in the financial year (April) to maximize compounding. For most people, SIP is recommended.
Can NRIs invest in ELSS?
Yes, NRIs can invest in ELSS through repatriable or non-repatriable routes. Tax benefits depend on NRI status and DTAA (Double Taxation Avoidance Agreement) with their country of residence. NRIs need to comply with FEMA regulations.
Is ELSS deduction available in the new tax regime?
No. Section 80C deduction (including ELSS) is NOT available in the new tax regime introduced in Budget 2020. You can claim ELSS tax benefit only under the old tax regime. Compare both regimes before deciding.
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