My dad invested in a LIC policy where upon maturity would get money when I turn 25. But for some reason we stopped paying the premium and told LIC to close the policy and give whatever money that they can give us till now, this was last year 2023-24, when I was 19. I got the money transferred by LIC directly to my savings bank account. So, my question is which income category does proceeds from an LIC policy fell into? And is it taxable? If taxable at what rate?
Edit: It was a children policy.
Please answer the query @TeamQuicko
Thank you.