Tax Planning
How to Save Tax with ELSS Before March 31
ELSS funds give you an 80C deduction of up to ₹1.5 lakh while keeping your money in equities. The 3-year lock-in is the shortest among all 80C options.
5 January 2026
Every year, millions of Indians scramble in February–March to invest ₹1.5 lakh under Section 80C. Most end up in FDs, NSC, or LIC policies — products that are either slow, illiquid, or both. There's a better option: ELSS.
What is ELSS?
Equity Linked Savings Scheme (ELSS) is a type of mutual fund that qualifies for deduction under Section 80C. Up to ₹1.5 lakh invested in ELSS in a financial year is deductible from your taxable income — saving you up to ₹46,800 in tax if you're in the 30% bracket.
Why ELSS Beats Other 80C Options
The lock-in is just 3 years — shortest among all 80C instruments. PPF locks in for 15 years, tax-saver FDs for 5 years. And unlike those fixed-return products, ELSS invests in equities, giving you the potential for inflation-beating returns over time.
SIP vs Lump Sum for ELSS
Don't wait until March. Start a monthly SIP of ₹12,500 from April and you'll hit your ₹1.5 lakh limit comfortably by March — while benefiting from rupee-cost averaging throughout the year. Each SIP instalment has its own 3-year lock-in from the date of investment.
One Caveat
ELSS only works under the old tax regime. If you've opted for the new regime, Section 80C deductions don't apply. Not sure which regime suits you? Talk to us — the answer depends on your income, HRA, home loan, and other deductions.