SIP Tax Benefits: ELSS and Section 80C Deductions

Discover the tax savings available through Systematic Investment Plans. Learn how ELSS mutual funds help save tax under Section 80C.

Learn By Jasim Mondal · Updated Jun 27, 2026

Introduction

Taxation on mutual funds directly impacts your net returns. As an investor in India, understanding the tax rules for short-term and long-term capital gains is crucial to effective financial planning.

ELSS (Equity Linked Savings Scheme) Tax Benefits

ELSS funds are equity funds that offer a tax deduction under Section 80C up to ₹1.5 lakh per year. They come with a mandatory 3-year lock-in period, which is the shortest among all tax-saving investments in India (PPF, NSC, NPS).

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