An Equity Linked Savings Scheme (ELSS) is a type of tax-saving mutual fund that invests primarily in equities and qualifies for deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakh per financial year. ELSS funds carry a mandatory lock-in period of three years—the shortest among all tax-saving instruments under Section 80C—and offer the dual benefit of potential capital appreciation from equity exposure alongside meaningful tax savings. For salaried individuals in India, ELSS has become one of the most popular and efficient tax-planning instruments, combining long-term wealth creation with tax efficiency.
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