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ELSS Calculator India 2025 - Equity Linked Savings Scheme

Calculate ELSS returns with tax benefits under Section 80C.

Tax Saving under 80C
3-Year Lock-in
Equity Returns
LTCG Tax Planning
Min: ₹500
₹
₹500₹25,000
10 years
3 years30 years
13.4% p.a.
8%20%
Historical ELSS average: 13.2% p.a.

ELSS Calculation Formulas

Understand the mathematical formulas used to calculate ELSS returns, tax benefits, and SIP growth.

1

ELSS SIP Growth Formula

Calculate the future value of your ELSS SIP investments.

FV = P × [((1 + r)^n - 1) / r]

Example:

₹5,000 monthly ELSS SIP at 12% p.a. for 3 years

5,000 × [((1 + 0.01)^36 - 1) / 0.01]
= ₹2,15,000

Variables:

P - Monthly SIP amount
r - Monthly return rate (Annual rate ÷ 12)
n - Number of monthly investments
2

ELSS Tax Benefits

Calculate tax savings from ELSS under Section 80C.

Tax Saved = Annual Investment × Tax Rate

Example:

₹1,50,000 annual ELSS investment at 30% tax rate

1,50,000 × 0.30
= ₹45,000 tax saved annually

Variables:

Annual Investment - Yearly ELSS investment (max ₹1.5L)
Tax Rate - Applicable income tax rate

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

ELSS Investment Tips

Expert tips to maximize your ELSS returns and tax benefits

Tax Benefits Under 80C

Save up to ₹46,800 in taxes annually by investing ₹1.5 lakh in ELSS. Shortest lock-in period among all 80C investments at just 3 years.

Equity Market Exposure

ELSS funds invest primarily in equity markets, offering potential for higher returns compared to traditional tax-saving instruments like PPF or NSC.

3-Year Lock-in Period

Each investment has a 3-year lock-in period. For SIP, each installment has its own 3-year lock-in from the date of investment.

LTCG Tax Planning

Gains above ₹1 lakh per year are taxed at 12.5% after the lock-in period. Plan your withdrawals to optimize tax efficiency.

Withdrawal Rules & Conditions

Lock-in Period: 3 years

After Lock-in Period:

Redemption: Full or partial redemption allowed

Tax: LTCG tax at 12.5% on gains above ₹1 lakh per year

Process: Submit redemption request to fund house or distributor

Before Lock-in Period:

Redemption: Not allowed except in exceptional circumstances

Penalty: Exit load may apply

Exceptions: Death of investor, Critical illness

Eligibility & Documentation

Who Can Invest:

  • Indian residents and NRIs
  • Individuals, HUF, and corporate entities
  • Minors through guardians
  • Trusts and societies

Required Documents:

  • PAN Card (mandatory)
  • Aadhaar Card
  • Bank account proof
  • Address proof
  • Passport size photographs
  • KYC compliance

Investment Limits:

SIP Minimum: ₹500 per month

Lump Sum Minimum: ₹500 per transaction

Tax Benefit Limit: ₹1.5 lakh per financial year for tax benefit

Investment Limit: No upper limit for investment

ELSS Calculator - Frequently Asked Questions

Get answers to common questions about ELSS Calculator

What is ELSS and how does it work?

ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests primarily in equity markets and offers tax deduction under Section 80C. It has the shortest lock-in period of 3 years among all tax-saving investments. You can invest up to ₹1.5 lakh per year and claim tax deduction, while potentially earning higher returns through equity market exposure.

What is the lock-in period for ELSS investments?

ELSS has a mandatory lock-in period of 3 years from the date of investment. For SIP investments, each monthly installment has its own separate 3-year lock-in period. This means if you start a SIP in January, the January installment will be locked until January of the 4th year, February installment until February of the 4th year, and so on.

How much tax can I save with ELSS investments?

You can invest up to ₹1.5 lakh per year in ELSS and claim tax deduction under Section 80C. The tax saving depends on your tax bracket: 5% bracket saves ₹7,500, 20% bracket saves ₹30,000, and 30% bracket saves ₹46,800 annually. This is in addition to the potential capital appreciation from equity market exposure.

What is LTCG tax on ELSS and how is it calculated?

Long Term Capital Gains (LTCG) tax on ELSS is 12.5% on gains above ₹1 lakh per financial year. The first ₹1 lakh of gains per year is tax-free. This tax is applicable only after the 3-year lock-in period when you redeem your investments. For example, if your annual gains are ₹2 lakh, you'll pay 12.5% tax on ₹1 lakh (₹2L - ₹1L exemption).

ELSS vs PPF vs NSC - which is better for tax saving?

Each has its advantages: ELSS offers highest return potential (12-15% historically) with shortest 3-year lock-in but comes with market risk. PPF provides guaranteed returns (~7-8%) with 15-year lock-in and complete tax exemption. NSC offers moderate returns (~6-7%) with 5-year lock-in. Choose based on your risk tolerance, investment horizon, and return expectations.

Can I withdraw ELSS before 3 years?

No, ELSS investments cannot be withdrawn before the 3-year lock-in period. There are no provisions for premature withdrawal even in case of emergencies. This is why it's important to invest only surplus funds that you won't need for at least 3 years. However, you can switch between ELSS schemes of the same fund house after the lock-in period.

What happens if I invest more than ₹1.5 lakh in ELSS?

You can invest more than ₹1.5 lakh in ELSS, but tax benefits under Section 80C are capped at ₹1.5 lakh per year. The excess amount will still be invested and can generate returns, but won't provide additional tax deduction. The entire investment (including excess) will be subject to the 3-year lock-in period and LTCG tax rules.

Should I choose SIP or lump sum for ELSS investment?

SIP is generally recommended for ELSS as it provides rupee cost averaging, reduces market timing risk, and helps build investment discipline. With SIP, you benefit from buying more units when prices are low and fewer when prices are high. Lump sum can work if you have a large amount available and market conditions are favorable, but requires better market timing skills.

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