Plan your ELSS SIP to maximise Section 80C tax deductions in FY 2025-26. See your exact annual tax savings, ELSS corpus at tenure end, and compare with PPF and FD.
ELSS (Equity Linked Savings Scheme) is the only mutual fund category that qualifies for Section 80C deduction under the old tax regime. With a 3-year lock-in (shortest among 80C options) and historical returns of 12–15% CAGR, ELSS is generally the best tax-saving instrument for long-term wealth creation — but only if you are in the old tax regime.
Section 80C deduction is only available in the old tax regime. If your total deductions (80C + HRA + 80D + home loan interest) exceed ₹3.75L for income up to ₹15L, the old regime saves more tax. Use the Old vs New Regime Calculator to compare. If you're in the new regime, ELSS is still a great investment but doesn't reduce your tax.
No. Each SIP instalment has a 3-year lock-in from its investment date. If you invest ₹8,000 in April 2025, that specific unit can only be redeemed from April 2028. The fund will not allow premature redemption — this is statutory. Planning a lumpsum redemption requires holding a continuous SIP until each instalment completes 3 years.
Yes. ELSS gains are taxed at 10% LTCG above ₹1.25L per year (Budget 2024 change — earlier was ₹1L). Since each SIP instalment is automatically long-term after 3 years, all ELSS redemptions are LTCG. Compare this to PPF which is fully tax-free. For investors in lower slabs or with small redemptions, ELSS tax impact may be minimal.
Consistently top-performing ELSS funds (based on 10-year CAGR): Mirae Asset Tax Saver, Quant Tax Plan, SBI Long Term Equity, HDFC ELSS Tax Saver, and Axis Long Term Equity. Always check 5-year and 10-year CAGR, fund manager tenure, and expense ratio. Consult a registered investment advisor before choosing.
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