Income tax on interest received from bajaj allianz.

Dear All,

I have recenly received an amount from Bajaj Allianz Life Insurance as cancellation of my life insurance policy along with some interest as per the Insurance Ombudsman order. Will I have to pay any income tax on the interest amount received by me which was awarded by the Ombudsman.

I approached the Ombudsman for cancellation of the policy because  I was misguided by the insurance agent.The Ombudsman orded for cancellation of the policy and refund of the principal amount along with 12% interest.Will I have to pay any income tax on the interest amount received.

Kindly clarify.

Thanks.