Surrender of ICICI pru pension plan

shalini (CA) (525 Points)

27 July 2022  
My client invested in pension policy in 2004. Name of the policy is ICICI Pru LifeStage Pension Ad. Now he has surrendered the policy. Value of the the fund was  around 4 L.  Then he invested 1.5 L from this amount in another ICICI pru fund and received balance 2.5 L. He has been paying premium of 10,000/- p.a. so he paid 1,70,000 /- over the years. 
                                                               
Please guide me about this taxation of surrender value. My confusion are:-                                                  
                                                               

1. What will be taxable surrender value 4 L or 2.5 L (4-1.5L)

 

2. Can he claim premium as cost ?          
               
3. Whole surrender value will be taxable as other sources income or it will be capital gain?