All you want to know about ELSS tax scheme

Tax planning is a fundamental part of financial planning, it helps to reduce tax liability and attain economic stability.

Equity Linked Saving Scheme (ELSS) helps to save taxes under Section 80C of the Income Tax Act.


ELSS is a tax saving instrument with the lowest lock-in period of 3 years


Potential for getting Better returns with SEBI mandate of minimum 80% investment in equity related instruments

Ideal for seeking long term capital appreciation inspite of 10% Long Term Capital Gains (LTCG) Tax

Redemption is not compulsory after a period of 3 years

Irrespective of the total amount of investment in an ELSS fund, The benefits would be limited only to ₹1,50,000.


Tax benefits up to ₹150,000 are inclusive of other benefits such as PPF, life insurance, repayment of home loan principal, etc.

Some Known schemes:

~ Aditya Birla Tax Relief Fund ~ Axis Long Term Equity Fund ~ Tata India Tax Savings Fund ~ Franklin India Taxshield Fund ~ Invesco India Tax Plan

Basic details:

One can start with a minimum amount of Rs. 500 in a SIP and there is no upper limit.

With Minimum rate of Interest to 12% and a minimum lock-in period of 3 years.