Tds on insurance maturity proceedings

I am a Salary Tax payer. I invested in HDFC' s Insurance Policy @25000/- p.a., for 5 years commencing from March 2012 to march 2016. my total contribution is Rs.125000/- and the total maturity amount received is Rs.132517.68 which includes my contribution of Rs.125000/-. now they have deducted TDS @1% on total maturity amount to the extent of Rs.1325/- and paid the balance amount. Now the form 26AS/16A will show Rs.132517.68 as gross amount on which TDS Rs.1325/- is deducted. If I show the maturity amount of Rs.132517.68 as other income and tds tereon in ITR 2, it will increase my tax liability further. Whether it is correct? If it correct, it clearly indicates the system of looting by our Govt. Taxing of already taxed income, that too after a long period on such income that the individual has no right to touch is really meaningless. How the Indian CA's firms are supporting such proposals of the Govt. If Maturity proceedings in excess of the individual's contributions are taxable there is no question all. reply and opinions in this regard are highly appreciated.