Mr. Jagdish Jha is the founder of JSMC Classes &Consultancy LLP, a Pune-based company has the core mission to Educate individuals to create Income as well as Wealth by imparting Simple and Best Knowledge through Stock Market Classes.
Read MoreTax Saving Products – ELSS & NPS
ELSS (Equity Linked Savings Scheme):
- What is it?
A type of mutual fund that invests mostly in equities (stock market). - Tax Benefit:
Deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act. - Lock-in Period:
3 years – the shortest among all 80C options. - Returns:
Market-linked (potential for high returns over the long term).
Who should invest?
Investors looking for tax saving + wealth creation.
NPS (National Pension System):
- What is it?
A government-backed retirement savings scheme. - Tax Benefit:
₹1.5 lakh under Section 80C
Additional ₹50,000 under Section 80CCD(1B) (over and above 80C) - Lock-in Period:
Till the age of 60 years. - Returns:
Market-linked (mix of equity, government, and corporate bonds).
Who should invest?
Individuals looking for long-term retirement planning + tax saving.
Quick Comparison Table
Feature | ELSS | NPS |
Tax Benefit | ₹1.5L (80C) | ₹1.5L (80C) + ₹50K (80CCD(1B)) |
Lock-in | 3 years | Till 60 years |
Return Type | Market-linked (Equity) | Market-linked (Equity + Debt) |
Liquidity | Moderate (after 3 yrs) | Low (until retirement) |
Ideal For | Short to mid-term wealth | Long-term retirement savings |
