Lesson 49 of 53 · ELSS funds · 3 min read · Reviewed 29 Oct 2026
Each instalment is locked for three years from its own allotment date, so a 12-month SIP unlocks over 12 months three years later. ELSS counts towards the ₹1.5 lakh deduction under section 123 of the Income-tax Act 2025 (80C of the 1961 Act), in the old regime only. The fund holds at least 80% in equity.
An ELSS fund invests at least 80% in shares and has a three-year lock-in.
Each SIP instalment unlocks three years after it was bought.
It counts towards the ₹1.5 lakh deduction under section 123 and Schedule XV, shared with PF, PPF and life premiums.
Key idea: The new regime, section 202, allows no such deduction, so ELSS is then an ordinary equity fund with a lock-in.
Tax rules as of 29 Oct 2026, checked on incometaxindia.gov.in.
Try the short quiz on this page to check what stuck.
Like other equity funds: 12.5% on long-term gains above ₹1.25 lakh a year.
Yes. PPF runs 15 years and tax-saving FDs five.
Yes, but nothing forces you to; it stays invested until you sell.
For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.