As stated in section 80C (2) “The sums referred to in sub section (1) shall be any sums paid or deposited in the previous year by the assessee –
(xviii) For the purpose of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property”
As per the provisions of section 80C, the deduction for principal repayment of housing loan is provided only in respect of a house property, whose income is chargeable to tax under the head lncome from house property.
As the house property is still under construction in previous year in which loan is paid, no income is chargeable to tax under the head income from house property.
Hence, no deduction shall be available under section 80C for principal repayment of the housing loan for property under construction.
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