Please Help: surrender of pension plan

I had a pension plan policy in my wife's name, taken in 2005, taken 80c benefit, no life assurance, but having guaranteed returns, ulip.

I have now surrendered this policy in current fy. My queries are : proceeds of the policy has gone in wife's account, should I consider this in my books? Is this amount taxable in full or only the incremental value? I want to reinvest this money, how to do to take benefit in my name. Wife is a housewife and does not have any income source.