Tax on lic jeevan suraksha

If  you had claimed income tax relief  under section 80CCC, whole surrender value will be added to your taxable income and will be taxed as per your slab rates.

If you did not claim deduction, then only bonus or interest shall be added to your total income as income from other source and income tax will be applicable.

Refer: Section 80CCC of IT Act

and consult your IT lawyer/CA in person.

The income of the fund maintained under this pension scheme is totally exempt from income tax being a fund maintained under section 10(23 AAB) of the Act.
3. The deduction under Section 80CCC is available up to a sum of Rs.10,000/- to the assessee, who is an individual in respect of any sum deposited by him into the above plan.
4. The deduction under Section 80 CCC is not available to a Hindu Undivided family.