Lic premature surrender policy proceeds - taxation

Jayanth kumar (3 Points)

18 December 2018  

Hi,

I had taken a Jeevan Anand Policy in 2013. I had paid the annual premiums for 5 years and subsequently had surrendered the policy in November 2018. At the time of surrender, the surrender value was paid to me which was 40% less than the premiums I had paid. 

I have the following queries:

1. Will this surrender negate the tax benefits I have already claimed?

2. Is the redemption proceeds on this premature surrender taxable? If yes, is it taxed as per the routine income tax slab?

Thank you in advance for the help