Skip to main content

ELSS is the only equity route into Section 80C: the amount invested (up to ₹1.5 lakh a year, with everything else under 80C) comes off taxable income under the old regime, and each instalment is locked for three years. The new regime gives no 80C deduction — the saving here is an old-regime figure.

₹
The 80C ceiling is ₹1.5 lakh across all 80C items
₹
%
yrs
At least the three-year lock-in

Results

Tax saved this year₹46,800₹1,50,000 eligible × 30% + 4% cess
Value after 5 years₹2.58 Lat 12.0% a year
Effective cost₹1,03,200after the tax saving
Return on net cost
20.1%a year
vs 11.5% on gross

Assumptions & formula

Section 80C limit ₹1.5 lakh; old-regime slabs; FY 2026-27
Tax saved = min(investment, 80C room) × marginal rate × 1.04
Value = SIP compounding monthly (or lumpsum at (1 + i)^n)
Effective return = (value ÷ (investment − tax saved))^(1 ÷ years) − 1
  • The saving assumes you are in the old regime with taxable income above the slab chosen; under the new regime there is no 80C deduction.
  • Surcharge is ignored; cess 4% is included.
  • Gains on redemption are long-term (held over a year): 12.5% above ₹1.25 lakh of equity LTCG in a year, not deducted here.

Calculators are for information and planning. Outputs depend on the inputs and assumptions you enter and are not a recommendation to buy, sell or hold any security or product. Streetgains Technologies Private Limited is a SEBI Registered Research Analyst (INH000017082); it is not a loan provider, tax adviser or mutual fund distributor.