ELSS Calculator
Calculate returns on Equity-Linked Savings Scheme (ELSS) investments in India. ELSS funds offer tax benefits under Section 80C while providing equity market returns with a mandatory 3-year lock-in period.
Return Expectations
Investment Summary
Investment Amount:
?0
Maturity Value:
?0
Total Returns:
?0
Tax Benefits
Tax Savings (80C):
?0
Effective Cost:
?0
Post-Tax Returns:
?0
Performance Analysis
Annualized Return:
0.00%
CAGR:
0.00%
Risk-Adjusted Return:
N/A
Understanding ELSS Investments
Equity-Linked Savings Scheme (ELSS) is a type of mutual fund in India that offers tax benefits under Section 80C of the Income Tax Act. ELSS funds invest primarily in equities and must maintain a lock-in period of 3 years, making them an attractive option for tax-saving investments with growth potential.
ELSS Key Features
Tax Benefits
- Deduction under Section 80C (up to ?1.5 lakh)
- Long-term capital gains tax exemption
- No TDS on dividends
- Indexation benefits on long-term gains
Investment Features
- Mandatory 3-year lock-in period
- Minimum investment: ?500
- Equity-oriented (65% in equities)
- Systematic Investment Plan (SIP) available
ELSS vs Other Tax-Saving Options
| Feature | ELSS | PPF | NSC | Tax Saving FD |
|---|---|---|---|---|
| Lock-in Period | 3 years | 15 years | 5 years | 5 years |
| Expected Returns | 12-15% | 7-8% | 6-7% | 5-6% |
| Risk Level | High | Low | Low | Low |
| Liquidity | After 3 years | Limited | After 5 years | After 5 years |
ELSS Investment Strategies
Lump Sum Investment:
- Invest entire amount at once
- Suitable for bonus or windfall gains
- Rupee-cost averaging not applicable
- Timing of market entry important
Systematic Investment Plan (SIP):
- Regular monthly investments
- Rupee-cost averaging benefits
- Disciplined investment approach
- Reduces timing risk
ELSS Categories
Multi-Asset ELSS
Diversified across equity, debt, and gold
Lower volatility
Large-Cap ELSS
Invests in large, established companies
Stable returns
Mid/Small-Cap ELSS
Focuses on growing companies
Higher growth potential
Tax Implications
ELSS Taxation Rules
Short-term Capital Gains (STCG):
- 15% tax on gains
- Applicable if redeemed within 3 years
- Plus 4% cess
- Not applicable for ELSS (lock-in)
Long-term Capital Gains (LTCG):
- No tax on gains up to ?1 lakh
- 10% tax on gains above ?1 lakh
- Plus 4% cess
- Indexation benefits available
Dividend Taxation:
- No TDS on dividends
- Taxed in investor's hands
- Based on individual's tax slab
- No indexation for dividends
Section 80C Benefits:
- Deduction up to ?1.5 lakh
- Available for investments
- Reduces taxable income
- Part of overall 80C limit
Risks and Considerations
Market Risks:
- Equity market volatility
- Potential for losses
- Economic downturns
- Interest rate changes
Liquidity Risks:
- 3-year lock-in period
- Cannot access funds early
- Emergency fund planning needed
- Opportunity cost of locked money
Key Takeaways for ELSS Investments
- ELSS offers tax benefits under Section 80C with equity market returns
- Mandatory 3-year lock-in period ensures long-term investment discipline
- Suitable for investors seeking tax-saving options with growth potential
- SIP investments help reduce market timing risks through rupee-cost averaging
- LTCG tax benefits make ELSS attractive for long-term wealth creation
- Consider your risk tolerance and investment horizon before investing
- Diversify across different ELSS funds to spread risk
- Regular review and portfolio rebalancing is essential for optimal returns