Housing loan

1]. For under construction properties the assessee is not entitled to take the benefit of interest paid on housing loan until he construction is completed and he starts living in ths house.  For the amount of interest paid till the previous year preceeding the year in whihc the assesse takes teh possession of the house the assessee is entitled to take the benefit of interest paid during this period in 5 equal installemtns beginning from the A.Y. relevant to the P.Y in whihc the assessee takes the possession of teh house.  In this case as the assessee has taken the benefit of interest for under construction property he will need to file a revised return and then pay the tax payable.  As regards the principal the assessee can take the benefit u/s 80C even if teh property is under construction as the sections allows the same.

2].In case of under construction properties the right to acquire the house property is considered as an capital asset.  This right to purchase the property is recongnized from the date the assessee is granted the by the builder.  Hence if the assessee surrenders his right to acquire the house property from the date of 3 years then he is liable to pay Short Term Capital Gains Tax on the profit earned from such sale.

3]. The sale of under construction property will be assesses under the HEad Capital Gains and sub-head Short Term Capital Gains if sold within 3 years and Long Term Capital Gains if sold after 3 years completion.  The benefit of interset/principal taken shall be added back to the taxable income and tax will be pai accordingly.

Thanks alot.

But as regard the principal repayment during construction period can it be claimed  u/s 80C

Yes principal u/s 80C can be claimed becasue the section nowhere prohibits of not taking such deduction