ELSS Calculator
ELSS funds, also known as Equity-Linked Saving Schemes, are a type of mutual fund investment scheme that provides tax benefits to investors. These funds mainly invest in equity and equity-related securities of companies across market capitalization segments and have a lock-in period of three years. ELSS funds can be a suitable investment option for individuals who aim to save taxes and are comfortable taking higher risks to achieve potentially higher returns.
SIP
Lumpsum
Monthly Investment
SIP Duration (yrs)
Expected return rate(p.a)
Calculate
Invested Amount
₹ 12,00,000
Estimated Returns
₹ 8,65,520
Total value
₹ 20,65,520
Approx. Tax Saved/year
₹ 37,440
How to use this calculator?
ELSS Funds
ELSS funds are mutual funds that are designed to help people invest in the stock market and save taxes at the same time. ELSS stands for Equity Linked Saving Scheme.
Lock-in period of ELSS funds
ELSS funds have a mandatory lock-in period of 3 years, which means that you cannot withdraw your investment for a minimum of 3 years from the date of investment. This lock-in period is designed to encourage long-term investment and provide stability to the fund.
Tax on ELSS funds
ELSS funds in India offer tax benefits under Section 80C of the Income Tax Act, with a maximum investment of Rs. 1.5 lakhs per year eligible for tax deduction. ELSS funds also have a long-term capital gains tax of 10% on gains exceeding Rs. 1 lakh in a financial year.
Tax benefits on new regime (Post 2023 budget)
Investments up to Rs. 1.5 lakhs per year in ELSS funds will not have tax benefits under the new tax regime. Taxpayers under the old tax regime can still claim deductions under Section 80C for their ELSS investments.
How does this calculator work?
FundsIndia ELSS calculator takes into account the amount you invested and gives you the tax savings. It assumes that you fall under the age of 60 for this calculation. This calculator DOES NOT calculate capital gains, only the tax saved via allowed deduction is calculated.
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What are ELSS funds?
ELSS stands for Equity Linked Saving Scheme. ELSS funds are mutual funds that invest primarily in equities and equity-related instruments. ELSS funds can be a suitable investment option for individuals who aim to save taxes and are comfortable taking higher risks to achieve potentially higher returns.
What is the lock-in period for ELSS funds?
The lock-in period for ELSS funds is three years. During this period, investors cannot redeem or sell their ELSS units.
What are the tax benefits of investing in ELSS funds?
Investments made in ELSS funds are eligible for tax deduction under Section 80C of the Income Tax Act up to a limit of Rs. 1.5 lakh in a financial year. Moreover, capital gains earned on ELSS funds are tax-free up to Rs. 1 lakh.
Are ELSS funds risky?
ELSS funds invest in equities and equity-related instruments, which are subject to market volatility and fluctuations. Therefore, they are considered to be high-risk investments. However, investing in ELSS funds for the long term can provide significant returns.
Can I invest in ELSS funds through SIP?
Yes, investors can invest in ELSS funds through SIP (Systematic Investment Plan). It allows investors to invest a fixed amount at regular intervals, which helps in averaging out the cost of investment.
Can I redeem ELSS funds after the lock-in period?
Yes, investors can redeem their ELSS units after the completion of the three-year lock-in period. However, it is advisable to stay invested for the long term to maximize returns.
What are the tax implications of ELSS Funds?
ELSS funds offer tax benefits to investors under Section 80C of the Income Tax Act, up to Rs. 1.5 lakhs per year. Capital gains on ELSS funds sold after the three-year lock-in period are taxed at a rate of 10% on gains above Rs. 1 lakh, while those sold before the lock-in period are taxed at a rate of 15%.