What is the ELSS lock-in period?

ELSS has a mandatory 3-year lock-in per SIP installment from its date of investment. This is the shortest lock-in among all Section 80C investments (PPF: 15 years, Tax-Saver FD: 5 years).

How is ELSS taxed at redemption?

Gains above ₹1 Lakh per year from ELSS are taxed at 10% LTCG. This is far lower than your 20-30% income slab rate on FD interest, making ELSS very tax-efficient after lock-in.

ELSS Calculator (Tax-Saving Mutual Fund)

Calculate your ELSS corpus, total tax savings under 80C, and post-LTCG returns. ELSS beats every other 80C option over 10+ years.

＋Equis / Investment Analytics

FORM ELSS · REV. 01

Monthly SIP

Amount per month

₹

Expected Return Rate

Per annum

Investment Tenure

3 years minimum

Years

ASSET

Investment Report

Total Invested₹12,00,000

Returns / Interest Earned₹11,23,391

Tax Saved (80C): ₹3,60,000 | LTCG Tax: ₹1,02,339 | Post-Tax: ₹22,21,052

ELSS Corpus (Pre-Tax)₹23,23,391

EQUIS Take (Asli Sach)

Sirf 3 saal ka sabse chota lock-in aur highest historical return. Tax bachane ke liye PPF (15 yr) ya FD (5 yr) se better ELSS hai. Par dhyan rahe,

gains pe 1 Lakh/yr ke upar 10% LTCG tax lagta hai.

The Math Behind ELSS Calculator (Tax-Saving Mutual Fund)

Understanding the true mechanics of this instrument helps you make optimal decisions with your money.

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1. Shortest Lock-in in Sec 80C

ELSS has only a 3-year lock-in — the shortest among all Section 80C investments (PPF: 15 years, Tax-Saver FD: 5 years, NPS: till 60). Each monthly SIP installment has an independent 3-year lock from its own date.

savings

2. Tax Saving + Equity Returns

Historically, large-cap ELSS funds have returned 12-14% CAGR over 10-year periods — far outperforming the 7-8% rates of PPF or Tax-Saver FDs while also saving tax under 80C (up to ₹1.5L deduction).

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3. LTCG Tax is Only 10%

Gains above ₹1 Lakh per year from ELSS redemption are taxed at just 10% LTCG — far lower than your 20%-30% income slab rate on FD interest. After tax, ELSS almost always beats every other 80C option over 10 years.

Frequently Asked Questions

What is the difference between ELSS and PPF for tax saving?expand_more

ELSS: 3-year lock-in, market-linked returns (historical ~12-14% CAGR), taxable LTCG on gains above ₹1L. PPF: 15-year lock-in, guaranteed 7.1%, completely tax-free. ELSS wins on returns; PPF wins on safety and tax exemption.

Can I do SWP from ELSS after the lock-in?expand_more

Yes. After the mandatory 3-year lock-in per installment, you can initiate an SWP. This provides tax-efficient monthly income since long-term equity gains are taxed at only 10% LTCG (above ₹1L/year).