I am investing ELSS funds through SIP and I claiming tax exemption from it. If iIstarted in investigating in SIPs
eg : if started in FY 2014-15 and claimed exemption for FY 2014-15
and same continued in 2015-16 and claimed exemption for FY 2015-16
My doubt is the lock in period for ELSS is 3 years. So for the redemption of SIP amount in FY 2014-15 I have wait till 2017 and what about for the sips invested in 2015-16 I have to redeem it in 2018 or i can with draw it in 2017….
Let us take an example for your better understanding. Let us say you started your SIP in ELSS in April 2016 till March 2017 (For FY 2016-17). Now each monthly SIP is considered as fresh investment for mutual fund companies.
Hence, April 2016 SIP will be eligible for withdrawal after April 2017. Same way May 2016 SIP will be eligible for withdrawal after May 2019. Finally, March 2017 month’s SIP units are eligible for withdrawal after March 2020.
You just keep in mind for simplification that each SIP amount is fresh investment. Each such monthly SIP must complete 3 years to be eligible for withdrawal.
However, if you want to withdraw all units of what you invested during April 2016 to March 2017, then you can do so to withdraw all units after March 2020. Because after March 2020, all your units will complete 3 years.