1. Both tax-saving instruments are quite different, hence not comparable, and can co-exist in a tax-payer's investment/retirement portfolio.
2. ELSS:-
a) Upto 1.5 lakhs investment is tax-exempt annually u/s 80C, with 3-yr lock-in, and no further lock-in of any kind.
b) LTCG tax @10% is applicable after 1 lakh LTCG, hence 1.5 lakh annual investment will be tax-free on its redemption after 3-yr lock-in, if returns are 18.5% CAGR (net of TER) max.
3. NPS:-
a) Upto 2 lakhs NPS contribution is tax-exempt annually u/s 80C/CCD, with lock-in upto 60 years age, and 40% further lock-in of proceeds in a lifelong annuity plan after maturity.
b) 60% of maturity proceeds is tax-free.
2. ELSS:-
a) Upto 1.5 lakhs investment is tax-exempt annually u/s 80C, with 3-yr lock-in, and no further lock-in of any kind.
b) LTCG tax @10% is applicable after 1 lakh LTCG, hence 1.5 lakh annual investment will be tax-free on its redemption after 3-yr lock-in, if returns are 18.5% CAGR (net of TER) max.
3. NPS:-
a) Upto 2 lakhs NPS contribution is tax-exempt annually u/s 80C/CCD, with lock-in upto 60 years age, and 40% further lock-in of proceeds in a lifelong annuity plan after maturity.
b) 60% of maturity proceeds is tax-free.