1. whether surrender value will be be added to current year’s income and taxable?
2. whether the value of the Units/ Investments or Profit thereon,purchased by the Insurance Company out of my policy premium and now,sold for effecting my surrender request will be required to be shown separately / added to Income for computing Tax.

Prabhat Dev Mondal , Patna

(5) Where, in any
previous year, an assessee

(i) …………

(ii) terminates his participation in any
unit-linked insurance plan referred to in clause (x) or clause (xi)
of sub-section (2), by notice to that effect or where he ceases to participate
by reason of failure to pay any contribution, by not reviving his participation, before contributions in respect of such participation have been
paid for five years; or

then,

(a) no deduction shall be allowed to the assessee
under sub-section (1) with reference to any of the sums, referred to in clauses(i), (x), (xi) and (xviii) of sub-section (2), paid in such previous year; and

(b) the aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.

1. If you claimed deduction u/s 80CCC , then principal value .
2. Add the bonus or interest credited to you at the time of surrender.

Remember , if you did not claim deduction u/s 80CCC, only bonus or interest shall be added to your total income as income from other source and charged to tax.