Education loan vs gift from grandfather

Sir, I need at least 4lakhs for my higher education. My grandfather is a pensioner and of age 83. He is ready to sponser me for my education, even thogh my parents are alive and working as teachers. His aanual pension is taxable at present. What is the best way to save incometax? If I apply for education loan which will be reciving in 2-4 steps with current intrest @ 12.20, and keep net amount required given by my grandfather in other bank account on interest, will it be feasible? And how much tax both of us have to pay? or deduced as a benefit?

    

Replies (1)
any amt given by your grandfather will not give tax benefit to either of you. so whether he pays for your higher education or not is not a question. if you take edu. loan then you can have deduction u/s 80E for the intt amt paid on such loan. now you can decide for yourself which situation is better for you.

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