Interst on housing loan/principal payment

Pre-Construction Interest and Current year Interest both should not exceed Rs. 1.5 lakhs or Rs. 30,000 u/s 24(b) in case of Self-Occupied Property. It's only deduction benefit which has been extended to 5 years whereas treatment of Pre-Construction Interest and Current year interest remains same.

 

In case of under construction property wehre the possession of the flat is yet to be alloted to teh flat holder, the assesssee cannot take the benefit of interest paid dring the construction period.  However the interset paid upto the previous year preceeding teh eyar in whihc the possession is being given shall be deductible in 5 equal isntallments from the  year in whihc the possession is given.  Also the benefit of interest paid after the possession can be taken, but the overall interest including pre-emi int shall note xceed 1.50lacs in case of SOP.

In your case even if teh bank has released 80% of teh loan and has also started deducting EMi you cant the benefit of interest paid as explained above.  However you can take the benefit of principal amount paid upto Rs 1lacs u.s 80C even if possession is not being given to you.