• I have recently won a certain sum of money by participating in a card game competition. What will be the tax implication on such income?

P. Roychaudhuri, Calcutta

• Section 115BB of the Income Tax Act says when total income includes income by way of winnings from any lottery or crossword puzzle or race then the amount of tax calculated shall be 30 per cent on such income.

Policy fraud

• Recently a friend of mine had found out while filing an accident claim that his motor insurance policy is a fake and not registered with the general insurance company whose name is printed on the policy certificate. Is there any way to verify whether my policy is genuine or not and what can be done to prevent such fraud?

S. Krishnan, Calcutta

• Whenever you are buying any insurance policy, even if it is for renewal, you should insist on checking the copy of the IRDAI licence of the broker. You should pay premiums using cheque or bank transfer. Finally, once you have a policy copy, you should verify with the call centre of the insurer that has issued the policy. In some cases, the insurers themselves undertake verification before issuing the policy.

Tax on FDs

• My bank has deducted tax from interest accrued on fixed deposit. But I am a senior citizen and my income is within the exemption limit of senior citizens. What should I do?

Pradip Pal, Calcutta

• The bank deducts tax at source at 10 per cent on interest accrued in each fiscal, when the interest amount exceeds Rs 10,000 per year. TDS can be prevented by submitting form 15H at the start of the fiscal. As the bank has deducted the tax, you can claim credit by filing tax return for the applicable assessment year.

If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abp.in, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001.