ELSS Tax Saving Calculator
Calculate your Section 80C tax savings and estimated post-tax returns from ELSS investments. Includes LTCG tax as per Finance Act 2024.
Investment Type
ELSS has a 3-year lock-in period.
Annual investment: ₹1,50,000 | Max 80C deduction: ₹1,50,000
Your Income Tax Slab
Maturity Value (3 yrs)
₹5.44 L
Tax Saved (80C)
₹45,000
LTCG Tax
₹0
Total Invested
₹4.50 L
Est. Returns
₹93,846
Net Gain (after tax)
₹1.39 L
Returns + Tax saved - LTCG tax
LTCG calculated as per Finance Act 2024: gains above Rs 1,25,000 taxed at 12.5%. Tax savings are estimates based on your selected slab. Consult a tax adviser for precise figures.
What is ELSS?
ELSS - Equity Linked Savings Scheme - is a mutual fund category that offers a Section 80C tax deduction (up to ₹1.5 lakh per year under the old regime) along with equity-market returns. The catch: ELSS has a mandatory 3-year lock-in, the shortest among 80C options. This calculator computes both your tax saving (based on slab) and the projected ELSS maturity value. Together they show the true post-tax return, which is often the best in the 80C basket because of equity's long-term growth potential.
How to use the ELSS Tax Saving Calculator
- Enter your annual ELSS investment. Up to ₹1.5 lakh qualifies for Section 80C.
- Set your tax slab. 30% / 20% / 5% - your marginal rate decides the tax saved.
- Set the expected ELSS return. Use 12% as a reasonable long-term equity assumption.
- Enter the tenure. Minimum 3-year lock-in; longer for real compounding.
- Review tax saved + maturity. See the immediate tax saving plus the long-term ELSS corpus.
Formula and method
Tax saving is realised in the same financial year as the investment (under the old regime). The investment itself grows like any equity mutual fund, taxed under the post-Finance-Act-2024 LTCG rules. The 80C deduction is not available under the new regime.
Why ELSS beats other 80C options for long-tenure investors
- Shortest lock-in. 3 years vs 5 for tax-saver FD/NSC and 15 for PPF.
- Equity returns. Historically the highest long-term return in the 80C basket.
- Tax saving is immediate. The deduction shows up in your same-year filing.
- Continues to compound. You can hold long beyond 3 years for full equity benefit.
- Old regime only. If you opt for the new regime, ELSS still works as a fund but the 80C benefit is gone.
Sample ELSS at ₹1.5 lakh/year, 12% return, 30% slab
| Tenure | Total invested | Tax saved | Maturity value |
|---|---|---|---|
| 3 years (lock-in) | ₹4.5 lakh | ₹1.4 lakh | ≈ ₹5.6 lakh |
| 7 years | ₹10.5 lakh | ₹3.3 lakh | ≈ ₹17.5 lakh |
| 10 years | ₹15 lakh | ₹4.7 lakh | ≈ ₹29 lakh |
| 15 years | ₹22.5 lakh | ₹7 lakh | ≈ ₹60 lakh |
Illustrative at 12% annual return. Tax saved assumes 30% marginal slab and consistent ₹1.5 lakh ELSS investment each year. LTCG on redemption is computed separately.