Significant Digits

Things to Contemplate on 22-Dec-2019:

Saw a news headline about a trader got a GST reminder to pay Rs. 5.9858630140000004 due asap. Look at the ridicule- and let me explain: We Indians tend to do things which will complicate the existing pattern, thinking that it shows the genius, intellect of the person who does it. But needless to say it is pointless to be so accurate in the context. It may be pertinent to be very accurate in Rocket Science or Astronomical calculations, but silly for a person to pay that amount. We have very disproportional concept of accuracy. Many of us have heard of “Margin of Errors” or “Total Significant Digits” which will help in understanding why it’s nonsensical or farcical.

A small set of examples may be worth mentioning:

• For Accounting: no places of decimal, ex.- 23,76,548
• For measuring Height / Weight: 1 place of decimal, ex.- 171.1 cm / 68.3 kg
• For Rupee & Paise: 2 places of decimal, ex.- 23.82
• For expressing Total Units held in MF: 3 places of decimal, ex.- 879.354
• For expressing NAV in MF: 4 places of decimal, ex.- 15.4793
• For Forex conversion: 5 places of decimal, ex.- 71.62783
• For Dividend Declaration in MF: 6 places of decimal, ex.- 2.987654

These figures are conventionally expressed in these ways, but if someone says he is 175.456789 cm tall and weighs 74.98674 kg - it looks and sounds ridiculous.

A word about the “Total Significant Digits”: The bigger the number is, the less numbers appear after decimal. Ex.- Rs. 46.55 makes some meaning- say the price of any article, but Rs. 45,56,765.43 is meaningless- say the annual income of a small company, because 43 paise is insignificant at 45.5 Lakh odd rupees. Similarly for a Crore a few rupees are insignificant. The Total Significant Digits refer to the number of continuous digits before and after a zero- in this case we have 8 significant digits. The general norm is 5 or 7 significant digits Like 234.45, 2,344.5, 23,445, or 2,34,450 and so on.

Google Mail ID

15-Sep-2019: Food for Thought

Do you know that the GMAIL ID is NOT unique- what it means is the same ID can be shared by several people. You may wonder HOW?

Let me explain: If a Gmail ID is abcdef@..., and if you place a dot [.] anywhere in between, then for Google it will mean the same person. But hold on for a moment- the reverse is not true. If some other person registers an ID like abc.def@..., then it will be accepted and both will get the mail meant for either. In the first instance, putting a dot will not make the existing email different, but while registering the Gmail will think they are different and hence registers the ID.

And both the persons will be able to have their own ID only separated by the respective passwords. Think it, try it. Sometimes I wonder how a big & renowned eMail provider does this.

Income Tax Dept & TDS

01-Jul-2019: Just Think of it

Just think of it: 

(1) IT Dept has extended the date of TDS deposit to 30-Jun-2019, and updating the data at their end to 10-Jul-2019. But for the ITR filing public the last date is still 31-Jul-2019. How does the IT Dept expect to have compliance within 3 weeks? 

(2) A new provision has been incorporated in ITR filing online- if the 26AS doesn't reflect correctly the TDS, then it can be added. Fine, theoretically. But how they are going to check it if the TDS deductor has not complied, or take action if found guilty? 

(3) What if the TDS is updated in the 26AS after one has filed ITR? will the system automatically update the TDS column of the ITR already filed? One PSU Bank has not yet deposited a single rupee of TDS throughout the year till today. 

(4) Why doesn't the IT Dept make it on line (Real Time transfer) the moment the TDS is deducted. It looks like the IT Dept is equally to blame for the non compliance of ITax if any due. What you say?

Our Economists

Poits to Ponder for 15-May-2019:

Our Country is proud of its world class Economists. But if we analyse a little we find something weird in their views. Without casting aspersion on any, we can say these: 

One of them 

(1) Doled out Rs 1 Bn (100 Cr) to a private NGO / Private Trust in July-1991; 

(2) Said Minorities must have first claim on resources in December 2006;

(3) Said, “We need to contain subsidies, Money doesn’t grow on trees” in Sep-2012; 

(4) And then went on to support the so called “NYAY” scheme in Mar-2019. 

Another criticises the current “MUDRA” scheme for serious flaws, but supports “NYAY”. 

And yet the latest entrant to the field of eminence even had conceptualised the “NYAY” scheme himself. 

Can we not have a group of eminent Economists helping the GoI with constructive and continuous participation, and not just criticism. Points to ponder! What you say?