A home loan for an under-construction property can get tax deductions up to Rs. 2 lakhs on the interest paid in a year and up to 1.5 lakhs for any principal paid under Section 80C of the Income Tax Act. A property still under construction will not have any kind of tax for interest paid on EMIs, under Section 24 of the Income Tax Act. Tax benefits on an under-construction property are not applicable if the home loan amount is used for renovation. Tax benefit on a home loan for an under-construction property is not applicable if during the pre-construction period you repay the principal, or if the loan is taken for buying a plot.