ELSS Calculator
About ELSS Calculator
ELSS Calculator – Calculate Tax-Saving Mutual Fund Returns
Planning to invest in ELSS funds ? Use our ELSS Calculator to estimate your potential returns and tax savings. ELSS (Equity Linked Savings Scheme) is a popular tax-saving mutual fund option under Section 80C of the Income Tax Act.
What Are ELSS Funds?
ELSS funds are tax-saving mutual funds that invest primarily in equities. They offer the dual benefit of wealth creation and tax deductions of up to ₹1.5 lakh per year under Section 80C . With the shortest lock-in period among tax-saving instruments (only 3 years), ELSS funds provide higher growth potential compared to traditional options like PPF or FD.
What Is the Lock-in Period for ELSS Funds?
The lock-in period for ELSS funds is 3 years , the shortest among all tax-saving investments under Section 80C. Unlike PPF (15 years) or NSC (5 years), ELSS allows quicker liquidity while still offering tax benefits.
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What Are the Tax Benefits of Investing in ELSS Funds?
• Tax Deduction: Up to ₹1.5 lakh per year under Section 80C.
• Tax-Free Growth: Long-term capital gains (LTCG) up to ₹1 lakh are tax-free. Gains above ₹1 lakh are taxed at 10%.
• No Tax on Dividends: Dividends from ELSS are tax-free in the hands of investors (though the fund house pays Dividend Distribution Tax).
Are ELSS Funds Risky?
Since ELSS funds invest in equities, they carry market-linked risks. However, they also offer higher return potential compared to fixed-income options. A well-diversified ELSS fund with a strong track record can help mitigate risks over the long term.
Can I Invest in ELSS Funds Through SIP?
Yes! You can invest in “ELSS funds via SIP (Systematic Investment Plan)”. A SIP helps in rupee-cost averaging, reducing market volatility impact. Each SIP installment has its own 3-year lock-in period.
Can I Redeem ELSS Funds After the Lock-in Period?
Yes, you can redeem “ELSS funds after the 3-year lock-in period”. However, staying invested longer may help maximize returns due to the power of compounding.
What Are the Tax Implications of ELSS Funds?
• During Lock-in: No redemption allowed before 3 years.
• After Lock-in:
LTCG Tax: Gains up to ₹1 lakh are tax-free; gains above ₹1 lakh are taxed at 10% without indexation.
STCG Tax: If redeemed before 1 year (though not possible due to lock-in), short-term gains are taxed at 15%.
Use Our ELSS Calculator for Better Planning
Our ELSS Calculator helps you estimate:
✔ Potential returns on lump-sum or SIP investments
✔ Tax savings under Section 80C
✔ Post-tax maturity value
Start investing smartly with ELSS funds and maximize your tax savings while growing your wealth!
Try our free ELSS Calculator today at Calculator91.com