Surrender of insurance policy and tax implications

Consider the following situation:

On Apr. 1,2003 Mr. Shyam invested in a  Pension Plan SBI Life Insurance. Annual Premium payable Rs. 10000/- payable at the  last day of calender year.Pension will start from year 2020, Last premium paid on Dec31,2011. Shyam has surrenderrd the policy on 15th Oct,2012 and received Surrender value Rs. 95,000. Now my question is:Tax implication for the case will be-

1.Will the full Surrender value is taxable as Inc from Other sources?

                        OR

2. Will the diference between Surrender value and sum invested i.e. Rs.15000(growth till the date of Surrender) is taxable as I.O.S.? 

                         OR 

3.Will  Full Surrender value is exempted, and if exempted then under which section

Your reply will be highly appreciated....Thanks in Advance.