Tax implication on surrender value

I am 64-year-old woman. I have an ICICI Prudential Life Stage Pension Policy since March 2008. The policy term is 10 years. I have paid premiums for five years. Since this policy is not offering good returns, I would like to surrender the policy. Please tell me what would be the tax implication if I surrender the policy and get the entire accumulated amount?
- Pooja

ICICI Prudential Life Stage Pension Policy is a Unit Linked Pension Plan. Since you have paid premium for five years and completed eight years with the policy, you will get the fund value minus all applicable charges and a surrender charge (1%). You should check with the insurance company to find out the exact surrender value for your policy. The money you get from this policy (surrender value) will be taxed as income in the year of receipt.

This article was originally published on March 02, 2016.