Answer

1. F

   Facts

   No deduction is allowed for a house until construction is completed. Interest paid during construction is saved up and claimed in five parts after completion. The flat also has no annual value until then.

2. P

   Provisions and law

   • Sec 24(b) (now Sec 22(1)(b))Deduction for interest on a home loan; ₹2,00,000 cap for self-occupied houses under the old regime
   • Sec 80C (now Sec 123)Deduction up to ₹1,50,000 including home loan principal and stamp duty, under the old regime
3. A

   Analysis

   Under Sec 24(b), interest relates to the property, which must exist to have income. So for FY 2025-26, nothing is claimed for an under-construction flat. Principal repayments do not qualify for Sec 80C until possession either. Keep the bank statements so you can claim the pre-construction interest later.

4. C

   Conclusion

   1. 1Keep year-wise interest records.
   2. 2Do not claim interest in the return yet.
   3. 3Note the possession date when it comes.
   4. 4Start the five part claim from that year.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.