Annuity received under jeevan suraksha pension policy of li

In the case of Jeevan Suraksha, you have the option of receiving 25 per cent of the assured amount at the start of the pension period; the balance is given to you every month till the time you live. The lumpsum of 25 per cent is taxable in the year of receipt. Also, if you or your nominee surrender the plan before maturity, the surrender value is taxable in the year of receipt. Where the plan is terminated before the start of pension period due to the death of the subscriber, the premium returned to the nominee or legal heir is not taxable. However, the interest earned on it is taxable.