ELSS Calculator India 2026

An Equity Linked Savings Scheme (ELSS) is a mutual fund that invests primarily in equities and qualifies for a Section 80C deduction of up to ₹1.5 lakh per financial year. This deduction is only available under the Old Tax Regime and reduces your taxable income before tax is calculated.

ELSS has a mandatory 3-year lock-in from the date of each investment — the shortest among all Section 80C options (PPF is 15 years, NSC is 5 years). For SIP investments, every monthly installment has its own 3-year lock-in end date, not the date of the first investment.

Gains held for more than a year are treated as long-term capital gains (LTCG) and taxed at 12.5% on gains above ₹1,25,000 in a financial year under Section 112A. Since the lock-in already exceeds one year, all ELSS redemptions are taxed as LTCG, not short-term gains.

ELSS offers market-linked equity returns and the shortest lock-in, which suits investors comfortable with volatility and a 3+ year horizon. PPF offers fixed, government-backed returns with a much longer 15-year lock-in. Neither is universally better — the right choice depends on your risk tolerance and time horizon.

No. Section 80C deductions, including ELSS, are available only under the Old Tax Regime. If you have opted for the New Tax Regime (the current default), your ELSS investment still grows and gets the equity LTCG tax treatment, but it will not reduce your taxable income.