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ELSS Calculator India — FY 2025-26

Calculate how much tax you save with ELSS under Section 80C, see your corpus grow over 3/5/10 years, compare ELSS vs PPF vs tax-saving FD side by side, and track exactly when each SIP instalment completes its 3-year lock-in. Updated for Finance Act 2024 rates.

Section 80C limit: ₹1,50,000/year (old regime only)
Your highest applicable tax slab under the old regime
%
Equity-linked: historically 12-15% CAGR over 10+ years

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How to Use This Calculator

ELSS Tax Saving tab

Enter your annual ELSS investment (up to ₹1,50,000 for full Section 80C benefit), select your income tax slab under the old regime, and set your expected return rate. The calculator shows your annual tax saving and projected corpus after 3, 5, and 10 years, including LTCG tax on redemption.

ELSS vs PPF vs FD tab

Compare the same ₹1,50,000/year invested in three Section 80C instruments — ELSS (equity-linked, 3-year lock-in), PPF (government-backed, 15-year lock-in, tax-free), and tax-saving FD (bank FD, 5-year lock-in, taxable interest). See the 10-year net post-tax corpus for each to decide which suits your risk profile.

SIP Lock-in Tracker tab

Enter your monthly SIP amount and start month. Since each ELSS SIP instalment has its own 3-year lock-in, the tracker shows exactly when each instalment becomes free to redeem. Useful for planning partial redemptions.

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The Formula

ELSS tax saving and corpus growth are calculated using straightforward formulas:

Tax Saved (per year):
Tax Saved = min(Investment, ₹1,50,000) × Tax Slab Rate × 1.04
(1.04 accounts for 4% health & education cess)

ELSS Corpus (annual investment compounded):
For each year y from 1 to N:
Corpus = (Previous Corpus + Annual Investment) × (1 + r)
Where r = expected annual return rate

LTCG Tax on Redemption:
Gains = Corpus − Total Invested
Taxable LTCG = max(0, Gains − ₹1,25,000)
Tax = Taxable LTCG × 12.5%

PPF Corpus (7.1% compounded annually, tax-free):
Same compounding formula as ELSS but at 7.1% with zero tax on returns

FD Post-Tax Return:
FD interest is taxable at slab rate
Effective FD return = FD Rate × (1 − Tax Slab Rate)

ELSS returns are market-linked and not guaranteed. The 14% default assumes long-term equity CAGR based on NIFTY 50 historical performance. Actual returns will vary based on fund selection, market conditions, and economic cycles.

Example

Amit — Mumbai IT professional, ₹12L salary, 30% tax slab

Amit earns ₹12,00,000 per year and is in the 30% tax bracket under the old regime. He invests ₹1,50,000/year in ELSS via a monthly SIP of ₹12,500. He expects 14% long-term returns.

Step 1: Annual tax saving

ELSS investment₹1,50,000
80C deduction₹1,50,000
Tax saved (30%)₹45,000
Cess saved (4%)₹1,800
Total tax saved/year₹46,800

Step 2: Corpus after 3 years (lock-in ends)

Total invested₹4,50,000
ELSS corpus (14%)₹5,52,672
Gains₹1,02,672
LTCG tax₹0 (below ₹1.25L exemption)

Step 3: Corpus after 10 years

Total invested₹15,00,000
ELSS corpus (14%)₹31,26,045
Gains₹16,26,045
LTCG tax (12.5%)₹1,87,631
Net corpus₹29,38,414

Step 4: Compare with PPF & FD (10 years)

ELSS net corpus₹29.38L
PPF corpus (tax-free)₹21.49L
FD net corpus (after tax)₹17.77L

Amit saves ₹46,800 in tax every year and his ELSS corpus grows to ₹29.38 lakh after 10 years (net of LTCG tax) — 37% more than PPF and 65% more than a tax-saving FD. The trade-off is market risk, which is mitigated by the long investment horizon.

FAQ

ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests primarily in equities and qualifies for tax deduction under Section 80C of the Income Tax Act. You can claim a deduction of up to ₹1,50,000 per financial year on ELSS investments, reducing your taxable income. At the 30% slab, this translates to a tax saving of ₹46,800 (including 4% cess). ELSS has a mandatory 3-year lock-in period — the shortest among all 80C instruments. This deduction is available only under the old tax regime; the new regime does not allow Section 80C deductions.
Yes. The Section 80C deduction limit remains at ₹1,50,000 per financial year for FY 2025-26. This limit has been unchanged since FY 2014-15. The ₹1.5 lakh limit is shared across all 80C instruments — ELSS, PPF, EPF, NSC, tax-saving FD, life insurance premium, SCSS, tuition fees, and home loan principal repayment. So if you invest ₹1.5L in ELSS, you have exhausted the entire 80C limit for that year. Note that this deduction is only available under the old tax regime.
Since ELSS has a mandatory 3-year lock-in, gains on ELSS are always classified as Long-Term Capital Gains (LTCG). As per the Finance Act 2024 (effective from FY 2024-25): LTCG on equity mutual funds (including ELSS) is taxed at 12.5% on gains exceeding ₹1,25,000 per financial year. The first ₹1.25 lakh of LTCG is exempt. This exemption limit was increased from ₹1 lakh to ₹1.25 lakh and the rate was increased from 10% to 12.5% in Budget 2024. If your total LTCG from all equity holdings in a FY is under ₹1.25 lakh, you pay zero tax.
Yes. Each SIP instalment in ELSS is treated as a separate investment with its own 3-year lock-in period starting from the date of allotment. For example, if you start a monthly SIP of ₹12,500 in April 2025, the April 2025 instalment becomes free in April 2028, the May 2025 instalment in May 2028, and so on. This means after the initial 3-year wait, one instalment becomes free every month, creating a rolling liquidity stream. Use the SIP Lock-in Tracker tab to see exactly when each instalment unlocks.
It depends on your risk tolerance and investment horizon. ELSS offers the highest potential returns (12-15% CAGR) and shortest lock-in (3 years), but returns are market-linked and volatile. Best for investors with moderate-to-high risk appetite and a 5+ year horizon. PPF offers guaranteed 7.1% returns with complete tax exemption (EEE status) and zero risk, but has a 15-year lock-in (partial withdrawal from year 7). Best for conservative investors. Tax-saving FD offers ~6-7% guaranteed returns with a 5-year lock-in, but interest is fully taxable at your slab rate — at the 30% slab, effective return is only ~4.5%. Generally the least attractive option for high-tax-bracket investors. For most young salaried professionals in the 30% bracket, ELSS is the most efficient choice due to higher returns and shortest lock-in.

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