ELSS Calculator — Calculations & Slabs for FY 2026-27

Equity Linked Savings Scheme (ELSS) is a category of diversified equity mutual funds in India. Under Section 80C of the Income Tax Act, investments in ELSS funds up to ₹1.5 Lakh per financial year qualify for tax deductions, helping you save up to ₹46,800 annually depending on your tax bracket.

ELSS has a mandatory lock-in period of 3 years (36 months) from the date of investment. This is the shortest lock-in period among all Section 80C tax-saving options (such as PPF at 15 years, Tax-Saving FDs at 5 years, and NPS).

Returns from ELSS are treated as Long-Term Capital Gains (LTCG) since the lock-in is 3 years. LTCG on equity mutual funds is tax-exempt up to ₹1.25 Lakh per financial year (as per current rules). Any gains exceeding ₹1.25 Lakh are taxed at 12.5% without indexation benefits.

Both methods are allowed. A Systematic Investment Plan (SIP) is generally recommended because it averages out your purchase cost over market cycles (rupee cost averaging). Note that for SIPs, each monthly installment is locked in for exactly 3 years from its respective date.

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.