Hi SagarGaonkar
Please try this config which should work 11N.
interface=wlan0
driver=nl80211
hw_mode=a
channel=36
ieee80211n=1
ssid=WLAN-test
auth_algs=1
wpa=2
wpa_key_mgmt=WPA-PSK
wpa_pairwise=TKIP
rsn_pairwise=CCMP
wpa_passphrase=12345678
ctrl_interface=/var/run/hostapd
ctrl_interface_group=0