India's union budget 2020-21 purpose to change following amendment in tax rate. Represent the information using a suitable graph. Justify your choice.
| Taxable Income Slab (Rs.) | Current Tax Rates | New Tax Rates |
|---|---|---|
| 0-2.5 Lakh | Exempt | Exempt |
| 2.5-5 Lakh | 5% | Exempt |
| 5-7.5 Lakh | 20% | 10% |
| 7.5-10 Lakh | 20% | 15% |
| 10-12.5 Lakh | 30% | 20% |
| 12.5-15 Lakh | 30% | 25% |
| Above 15 Lakh | 30% | 30% |
Source: PRS India (https://www.prsindia.org/parliamenttrack/budgets/union-budget-2020-21-analysis)
Since the data has two rate-series (current, new) measured on the same discrete categories (income slabs), a clustered (grouped) bar graph is the correct choice — it lets each slab's old vs new rate be compared side by side.
Clustered bar graph: for each category (here, income slab), draw two (or more) bars side-by-side, one per data series, all sharing the same category axis and a common value axis (tax rate %).
- Restate the given data:
| Taxable Income Slab (₹) | Current Tax Rate | New Tax Rate |
|---|---|---|
| 0–2.5 Lakh | Exempt (0%) | Exempt (0%) |
| 2.5–5 Lakh | 5% | Exempt (0%) |
| 5–7.5 Lakh | 20% | 10% |
| 7.5–10 Lakh | 20% | 15% |
| 10–12.5 Lakh | 30% | 20% |
| 12.5–15 Lakh | 30% | 25% |
| Above 15 Lakh | 30% | 30% |
- The -axis lists the 7 income slabs (discrete, ordered categories); the -axis is the tax rate (%), running to .
- For each slab, draw two adjoining bars — one for "Current" and one for "New" — using two distinct colours/shading, with a small gap between slab-groups (standard clustered-bar construction).
- Justification: a single bar graph could only show one series; a line graph is inappropriate because income slabs are discrete categories, not a continuous time/numeric progression along which a rate "flows" — there is no meaningful slope between non-adjacent slab midpoints. The clustered bar graph directly answers the natural question — "how did the rate for each slab change?" — without distorting the categorical nature of the slabs.
- Reading the chart: the new-rate bar is shorter than (or equal to) the current-rate bar in every slab except the top slab (Above 15 Lakh), where both remain 30% — visually confirming the budget's stated tax relief for all slabs up to ₹15 Lakh.
A clustered (grouped) bar graph — income slab on the x-axis, one bar-pair (current rate, new rate) per slab — is the most suitable graph; justified because the data is discrete-categorical (income slabs) carrying two comparable series.
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.