Sip Calculator
Every year between January and March, millions of Indians scramble to save tax under Section 80C. The smartest option? ELSS SIP — it saves you up to ₹46,800 in taxes AND builds long-term wealth simultaneously. No other 80C instrument combines both as effectively.
What is ELSS SIP?
ELSS (Equity Linked Savings Scheme) is a category of mutual fund that qualifies for Section 80C deduction. Key features:
- Tax deduction: Up to ₹1.5 lakh per year under Section 80C
- Lock-in period: 3 years (shortest among all 80C options)
- Investment type: Equity mutual fund (minimum 80% in stocks)
- Historical returns: 12–16% CAGR over 10+ years
- Tax on gains: LTCG above ₹1.25 lakh taxed at 12.5%
How Much Tax Does ELSS SIP Save?
| Tax Bracket | Annual ELSS SIP (₹1.5L) | Tax Saved | Monthly SIP Needed |
|---|---|---|---|
| 5% Tax Bracket | ₹1,50,000 | ₹7,800 | ₹12,500/mo |
| 20% Tax Bracket | ₹1,50,000 | ₹31,200 | ₹12,500/mo |
| 30% Tax Bracket | ₹1,50,000 | ₹46,800 ✓ | ₹12,500/mo |
If you're in the 30% tax bracket and invest ₹1.5 lakh via ELSS SIP, you save ₹46,800 per year in taxes. That's ₹3,900/month in tax savings — which effectively reduces your net SIP cost to just ₹8,600/month.
ELSS SIP Tax Savings Calculator ↓
🧮 ELSS Tax Benefit Calculator
Annual Tax Saved
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Corpus After 10 Yrs
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Assumes 13% CAGR for ELSS. Capped at ₹1.5L/yr for 80C. Full SIP Calculator →
ELSS vs PPF vs NSC: The 80C Comparison
| Feature | ELSS | PPF | NSC |
|---|---|---|---|
| Returns | 12–15% (market-linked) | 7.1% (fixed) | 7.7% (fixed) |
| Lock-in | 3 Years | 15 Years | 5 Years |
| 80C Limit | ₹1.5 L | ₹1.5 L | ₹1.5 L |
| Tax on Maturity | 12.5% LTCG above ₹1.25L | Tax-free | Taxable |
| Liquidity (post lock-in) | High | Low | Low |
ELSS wins on returns and liquidity. PPF wins on guaranteed tax-free maturity. For investors under 45 with a 10+ year horizon, ELSS typically outperforms PPF by 50–100% in total corpus.
Tax Season Strategy: When to Start ELSS SIP
Best time to start: April 1 (start of financial year) — gives maximum time for each installment to compound.
Don't wait until March: Many investors make the mistake of doing a lump-sum ELSS investment in March. This is suboptimal — you miss out on 11 months of compounding and rupee-cost averaging.
The December-January strategy: If you start now (December/January), you can complete your ₹1.5 lakh investment via monthly SIP by March 31, maximizing the current year's 80C benefit.
Calculate Your ELSS SIP Growth + Tax Savings ↓
Our free calculator shows both your tax savings and total corpus for any ELSS SIP amount.
Open SIP Calculator →Frequently Asked Questions
How much tax can I save with ELSS SIP?
ELSS investments up to ₹1.5 lakh per year qualify for Section 80C deduction. In the 30% tax bracket, this saves ₹46,800 (including cess). In 20% bracket: ₹31,200. In 5% bracket: ₹7,800.
What is the lock-in period for ELSS SIP?
ELSS has a 3-year lock-in period. For SIP, each installment has its own 3-year lock-in from the date of investment. So a SIP started in January 2025 — the January installment unlocks in January 2028.
Is ELSS better than PPF for tax saving?
ELSS has historically given 12-15% CAGR vs PPF's ~7.1%. ELSS lock-in is 3 years vs PPF's 15 years. ELSS gains above ₹1.25 lakh are taxed at 12.5%, while PPF is fully tax-free. For aggressive investors with a 5+ year view, ELSS wins on returns.
Can I start an ELSS SIP anytime?
Yes. However, to maximize tax benefits for the current financial year, start by December or January. Investments made April–March qualify for the same year's 80C deduction.
Is ELSS SIP taxable at maturity?
ELSS SIP gains above ₹1.25 lakh per year are taxed at 12.5% LTCG. The ₹1.25 lakh exemption applies to all equity fund gains combined in a financial year.
What happens if I miss an ELSS SIP installment?
Missing an ELSS SIP installment doesn't break the SIP or invalidate the lock-in. The fund house simply doesn't invest that month. You can resume next month, and each invested installment maintains its own 3-year lock-in.
How is ELSS different from regular mutual funds?
ELSS funds are equity mutual funds with a mandatory 3-year lock-in that qualifies investments for Section 80C tax deduction up to ₹1.5 lakh per year. Regular equity funds have no lock-in and no direct 80C benefit.