Question 1

What is ELSS in plain English?

Accepted Answer

ELSS is a type of equity mutual fund that qualifies for tax deduction under Section 80C. Each investment is locked for 3 years from its purchase date.

Question 2

How much tax can I actually save?

Accepted Answer

If you are in the 30% slab, investing ₹1.5 lakh in ELSS saves you ₹46,800 in tax (including 4% cess). In the 20% slab, you save ₹31,200.

Question 3

Is ELSS better than PPF, FD or NSC?

Accepted Answer

ELSS has the shortest lock-in (3 years) and the highest long-term return potential. PPF and FDs are safer but give lower returns and lock you in for 5–15 years.

Question 4

Can I do ELSS via SIP?

Accepted Answer

Yes. SIP in ELSS is the most disciplined way. Each monthly installment is locked for 3 years from its own date.

Question 5

What about the new tax regime?

Accepted Answer

Under the new regime, 80C deductions don't apply. We help you decide which regime is better for you before recommending ELSS.

Question 6

Will I have to pay tax when I redeem?

Accepted Answer

Long-term capital gains above ₹1.25 lakh per year are taxed at 12.5%. Most retail investors pay little to no tax in practice.

Save tax. Grow wealth. Both.

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