Tax Saving

Comparative Analysis of ELSS with other Instruments u/s 80C

Section 80C of Income Tax Act, 1961, includes the provisions regarding exemption up to Rs.1,50,000 from the total taxable income.

Apart from ELSS, there are several other investments like PPF, LIC, NSC, FD, etc., which provide the same benefit of a tax deduction. But, ELSS is one of the most beneficial instruments as can be seen in the following presentation.

Investment Type

Lock-In Period

Tax on Interest earned

Historical Returns Dividends Systematic Investing
ELSS 3 Years Exempted 14%-16% TAX FREE Available
LIFE INSURANCE 5 Years Exempted 5%-7% No Not Available
PPF 15 Years Exempted 7.5% – 8.5% No Available
NSC 5/10 Years Taxable 8.50% No Not Available
FD 5 Years Taxable 8%-8.50% No Not Available

Tax Benefits of Equity Linked Savings Schemes (ELSS)

Compare the tax benefits you stand to gain under different income brackets by investing in Equity Linked Savings Schemes (ELSS).

Your Taxable


Amount invested in ELSS under section 80C

Tax before ELSS


Tax after ELSS investment Total Savings* Tax Slab
5,00,000 1,50,000  13,000  5,200 7,800 5% of Income exceeding Rs.2,50,000 and up to Rs.5,00,000
8,00,000 1,50,000  75,400  44,200 31,200 20% of Income exceeding Rs.5,00,000 and up to Rs.10,00,000
12,00,000 1,50,000  1,79,400  1,32,600  46,800 30% of Income exceeding Rs.10,00,000
15,00,000 1,50,000  2,73,000  2,26,200  46,800 30% of Income exceeding Rs.10,00,000

*Including Health and Education cess of 4%

Kindly consult your Income Tax advisor before further action