sectiom 80E

Yes, deduction u/s. 80E is based on the actual payment of interest in the FY. Section 80E provides for tax deduction only on the interest component of an education loan for higher studies. The principal amount cannot be claimed for deduction under this section. Deductions can be claimed from the start of first repayment till 7 more repayments are made, that is, a total of 8 deductions are available with respect to the interest component.