How to invest in ELSS via Coin

From WebNotes, a public knowledge base. Last updated 12 May 2026. Reading time ~10 min. Level: Beginner.

Key facts

Platform	coin.zerodha.com or Coin mobile app
Tax deduction	Up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act
Lock-in period	3 years from each investment date (each SIP instalment separately)
Fund type	Equity-oriented (min 80% in equities); SEBI-regulated open-ended scheme
Returns taxation	LTCG at 12.5% on gains above Rs 1.25 lakh per year after lock-in (Finance Act 2024)

An Equity Linked Savings Scheme (ELSS) is a category of open-ended equity mutual fund that qualifies for income tax deduction under Section 80C of the Income Tax Act, 1961. Investments in ELSS of up to Rs 1.5 lakh per financial year reduce your taxable income by the same amount, subject to the Rs 1.5 lakh aggregate limit under Section 80C. ELSS schemes have a mandatory 3-year lock-in period per investment tranche, the shortest lock-in among all Section 80C instruments.

Zerodha Coin offers direct plans of ELSS schemes from all major AMCs, allowing investors to access these tax-saving funds at a lower expense ratio than regular plans.

Prerequisites

An active Zerodha trading and demat account with complete KYC.
TOTP authenticator for Zerodha two-factor login.
UPI app or net banking access for payment.
Understanding that ELSS units are locked in for 3 years from each purchase date.
Verification that you are using the old tax regime (Section 80C deduction is not available under the new tax regime introduced by Finance Act 2020 for those who opt for it).

ELSS under the Income Tax Act and SEBI regulations

SEBI categorises ELSS under SEBI (Mutual Funds) Regulations, 1996 (SEBI Circular SEBI/HO/IMD/DF3/CIR/P/2017/114) as an open-ended equity-linked savings scheme with a statutory lock-in of 3 years. Each AMC may offer only one ELSS scheme.

Key features under the Income Tax Act, 1961 and SEBI regulations:

Section 80C deduction: Investments in ELSS qualify for deduction under Section 80C of the Income Tax Act up to Rs 1.5 lakh per financial year (combined ceiling with all Section 80C instruments including PPF, EPF, NSC, life insurance premiums, ULIP, and others).
New tax regime: Under the new tax regime (Section 115BAC), Section 80C deductions are not available. Investors who have opted for the new regime cannot claim ELSS as a tax deduction, though they can still invest in ELSS as a general equity mutual fund without the tax benefit.
Minimum equity exposure: ELSS schemes must invest a minimum of 80% of assets in equity and equity-related instruments.
Lock-in period: Each investment has a mandatory 3-year lock-in from the date of allotment. Units cannot be redeemed, switched, or pledged during the lock-in period.
LTCG tax after lock-in: Gains from ELSS redemptions (after 3 years, so always LTCG) are taxed at 12.5% on gains exceeding Rs 1.25 lakh per financial year, per Finance Act 2024 (effective 23 July 2024), without indexation.

Step-by-step procedure

Step 1: Log in to Coin

Navigate to coin.zerodha.com or open the Coin mobile app. Enter your Zerodha client ID, password, and TOTP.

Step 2: Find ELSS schemes

Use the search bar on the Coin dashboard. Type “ELSS” to see all ELSS schemes available on Coin. You can also browse by category: on the Explore page, select the category “ELSS” or “Tax Saving”.

The search results show all ELSS schemes from major AMCs (Axis, HDFC, Mirae, SBI, DSP, Canara Robeco, and others). Each entry shows the fund name, 1-year return, AUM, and expense ratio.

Step 3: Compare ELSS schemes

On each fund’s detail page, review:

3-year and 5-year returns: Since ELSS has a 3-year lock-in, the minimum useful return comparison is the 3-year period.
Expense ratio: Direct plan ELSS funds typically have TERs of 0.5% to 1.0% per annum. Lower is better for long-term compounding.
Fund manager and tenure: Continuity of fund management is relevant for an equity fund.
Portfolio: Review the top-10 holdings and sector allocation. Check for portfolio overlap with other equity funds you already hold to avoid concentration.
AUM: Larger AUM provides better liquidity at the portfolio level.

Step 4: Invest via lump-sum

To make a one-time lump-sum ELSS investment, click Invest on the fund detail page. Enter the amount (minimum Rs 500 for most ELSS schemes). Click Invest.

Complete payment via UPI or net banking. The UPI collect request must be approved within the time window. After payment confirmation, the ELSS units are allotted at the cut-off NAV (same-day NAV if payment is received before 3 PM IST on a business day; next business day’s NAV if after 3 PM).

For Section 80C deduction purposes, the investment date is the date of allotment, not the payment date (though they are typically the same for same-day orders). Ensure the investment is made on or before 31 March to count for the current financial year.

Step 5: Invest via SIP

To set up a monthly ELSS SIP for systematic tax saving:

Click SIP on the ELSS fund detail page.
Enter the monthly SIP amount. A common approach is to divide the desired annual ELSS investment by 12 (for example, Rs 12,500 per month for Rs 1.5 lakh per year).
Set the SIP date, frequency (monthly), and end date (you may set an end date of 31 March of the target financial year, or leave it perpetual).
Register a UPI autopay or NACH mandate.

See How to start an SIP on Coin for the full SIP registration procedure.

Important: Each SIP instalment has its own 3-year lock-in from the date of that instalment. A January 2026 instalment is locked in until January 2029; a March 2026 instalment is locked in until March 2029. This means an ELSS SIP does not provide a single block redemption date; units become available for redemption on a rolling basis.

Step 6: Note lock-in expiry dates

Track the lock-in expiry date for each lot of ELSS units. Coin displays the lock-in status for ELSS units in the Holdings detail:

Units under lock-in: The Redeem button will not be active for locked-in units.
Units past lock-in: The Redeem button becomes active.

For ELSS SIPs, the earliest units (January SIP instalment) are redeemable after January of the year three years later. The latest instalment (December) of the same financial year is locked until December of the third year.

Step 7: Redeem after lock-in

After the 3-year lock-in from each unit’s allotment date, the units become redeemable. Follow the How to redeem a mutual fund on Coin procedure. CDSL TPIN or OTP authorisation is required as with any redemption on Coin.

Note that you are not required to redeem ELSS units after 3 years. Many investors continue to hold ELSS investments beyond the lock-in if the fund’s performance remains satisfactory and there is no immediate need for the funds.

ELSS vs. other Section 80C instruments

Instrument	Lock-in	Returns	Liquidity after lock-in
ELSS	3 years	Market-linked	High (redemption T+3)
PPF	15 years	Government-assured (~7.1%)	Partial after year 7
NSC	5 years	Government-assured (~7.7%)	No premature exit
EPF	Until retirement	Employer + employee contribution	Limited early withdrawal
ULIP	5 years	Market-linked + insurance	Moderate

ELSS is the only Section 80C instrument offering market-linked equity growth with a 3-year lock-in. The tradeoff is full market risk with no capital protection.

Tax deduction claim process

To claim the Section 80C deduction for ELSS investments in your income tax return (ITR-2 for investors with capital gains income):

Obtain the investment confirmation or account statement from Coin or CAMS.
The invested amount (up to Rs 1.5 lakh across all Section 80C instruments) is entered in Schedule VI-A of the ITR.
The deduction reduces your gross total income before computing tax liability.

What can go wrong

New tax regime opted: If you have opted for the new tax regime, Section 80C deductions are not available. ELSS can still be held as a general equity fund but without the tax benefit.

Investment after March 31: ELSS investments after 31 March count for the next financial year’s Section 80C deduction, not the current year’s.

SIP instalment failures in March: If a March SIP instalment fails due to insufficient balance, it is not reinvested automatically, and the March investment does not count for that financial year’s Section 80C.

Attempting to redeem locked-in units: Coin will not permit redemption of locked-in ELSS units. The Redeem button is disabled for these units.

References

SEBI (Mutual Funds) Regulations, 1996, as amended.
SEBI Circular SEBI/HO/IMD/DF3/CIR/P/2017/114 dated 6 October 2017 – Categorisation and Rationalisation of Mutual Fund Schemes (ELSS definition).
Income Tax Act, 1961, Section 80C (ELSS deduction).
Finance Act 2024 – Revised LTCG rates (Section 112A), effective 23 July 2024.
AMFI Guidelines on ELSS and Section 80C investments.
Zerodha Coin support documentation (support.zerodha.com).

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 12 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.