3-year lock-inSection 123 (80C)

ELSS SIP Calculator

Project corpus from a Systematic Investment Plan in an Equity-Linked Savings Scheme. 3-year lock-in per instalment. Section 123 deduction; LTCG at 12.5% above ₹1.25L.

Maturity corpus (before tax)
₹63,07,200
180 SIP instalments at 12% p.a.
  • Total invested₹22,50,000
  • Capital gains₹40,57,200
  • LTCG exempt (₹1.25L)₹1,25,000
  • LTCG taxable @ 12.5%₹39,32,200
  • LTCG tax payable₹4,91,525
  • Net corpus (after tax)₹58,15,675
  • 80C tax saving (30% bracket, 15y)₹6,75,000
Each SIP instalment has a 3-year lock-in from its own contribution date. If redeemed at the end of tenure, all units are long-term - LTCG rules apply.

ELSS vs other 80C options

Equity-Linked Savings Schemes (ELSS) are diversified equity mutual funds with a statutory 3-year lock-in. They qualify for Section 123 (formerly 80C) deduction up to ₹1.5 lakh per year, and historically deliver 12-15% returns over long periods (subject to market risk).

Tax on ELSS redemption

  • Each SIP instalment is locked for 3 years from its own contribution date.
  • Gains on redemption are Long-Term Capital Gains (LTCG) under Section 112A.
  • First ₹1.25 lakh of LTCG per year (across all listed equity and equity MFs) is exempt.
  • Beyond that, taxed at 12.5% flat (without indexation).

FAQs

Why is ELSS popular for 80C?

ELSS has the shortest lock-in (3 years) among all Section 80C / 123 instruments - and equity-linked returns. PPF has 15-year lock-in; NSC and tax-saver FD have 5 years.

How is ELSS taxed?

Each SIP instalment has its own 3-year lock-in. On redemption, gains are LTCG (since you can't redeem before 3 years). LTCG above ₹1.25 lakh in a year is taxed at 12.5% under Section 112A.

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