PPF vs. ELSS Calculator

Choosing the Right 80C Investment

Under Section 80C of the Income Tax Act, Indian taxpayers can deduct up to ₹1.5 Lakh from their taxable income by investing in specific instruments. PPF and ELSS are two of the most popular choices, but they serve very different purposes.

PPF (Public Provident Fund)

• Risk: Low (Government-backed).
• Return: Fixed interest (currently 7.1%, reviewed quarterly).
• Lock-in: 15 years (partial withdrawals allowed after 7 years).
• Taxation: EEE (Exempt-Exempt-Exempt). No tax at any stage.

ELSS (Equity Linked Savings Scheme)

• Risk: High (Market-linked equity risk).
• Return: Historical average of 12-15% over the long term.
• Lock-in: 3 years (shortest among all 80C options).
• Taxation: LTCG tax of 12.5% on gains exceeding ₹1.25 Lakh per year.