I have paid premium for 3 yrs for HDFC LIfe policy (Unit Linked Endowment Policy) from year 2008 till 2010.
I wish to surrender the policy now.
They will charge 15% surrender value.I have not completed 5 premiums, though I have held the policy more than 8 years.
Will the money I get after these deductions taxable by IT dept?
If it is taxable, do I have to pay for the entire surrender value, or only for the increase from my original investment which is my profit part?
I have not claimed tax benefit on this policy as I had other insurance policies for that.