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Investments

ELSS

pronounced: [E-L-S-S]

Equity Linked Savings Scheme is a diversified equity mutual fund that offers tax benefits under Section 80C with a mandatory lock-in period of 3 years.

It is the only equity product qualifying for 80C deduction.

Key Facts

FactValue
Tenure3 years
Tax SectionSECTION 80C

Example

Under Section 80C, you can claim up to ₹1.5 lakh/year for PPF, ELSS, life insurance premiums, EPF, home loan principal, NSC, and tuition fees. Combined with 80D health insurance (up to ₹1 lakh for family), a taxpayer can save up to ₹62,400/year in taxes at 30% bracket.

Frequently Asked Questions

Related Terms

SIPSection 80C
Mutual Funds

Last updated: 21 May 2026