They solve the same 80C tax deduction but they are not the same kind of money. PPF is safe, government backed, and locked for fifteen years, with returns revised quarterly. ELSS is an equity mutual fund with only a three year lock in, so it is more liquid but its value rises and falls with the market and can fall right when you need it. For a founder who already holds huge equity risk through the company, loading more equity risk into ELSS may not be wise, and the shorter lock in tempts you to treat it as reachable cash when it is not really safe cash. A common approach is to split 80C across both by your comfort with risk rather than picking one. Both give the deduction under the old tax regime only, and 80C, lock ins, and rates all change, so confirm the current rules with a CA before you decide.
A curated summary to orient you, not advice. The resources below are the real value.
4 hand-picked resources, 4 India-specific, 4 link-checked. Pick how you want to dig in.
Why we picked it How ELSS gives you an 80C tax deduction while keeping the money in equity, with the shortest lock in of the 80C options.
From ClearTax by ClearTax
Open cleartax.in →Why we picked it The India-specific detail on how PPF and NPS work: lock ins, returns, and the tax treatment, so you know what you are committing to before you commit.
From ClearTax by ClearTax
Open cleartax.in →Why we picked it The full menu of section 80C tax-saving options (PPF, ELSS, insurance, and more) under the old regime, in one place.
From ClearTax by ClearTax
Open cleartax.in →Why we picked it The mutual fund industry body investor corner: fund basics, NAVs, and how SIPs work, straight from the source.
From AMFI by AMFI
Open amfiindia.com →
