Equity Linked Savings Scheme (ELSS)
A tax-saving mutual fund with a 3-year lock-in.
Definition
An Equity Linked Savings Scheme (ELSS) is a diversified equity mutual fund that qualifies for a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. It has the shortest lock-in among 80C options — just 3 years.
Example
Investing ₹1.5 lakh in ELSS can save up to ₹46,800 in tax (at the 30% slab) while giving equity-market exposure.
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