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Exercise 10.2 · Q3
Q.

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 RatesNew Tax Rates
0-2.5 LakhExemptExempt
2.5-5 Lakh5%Exempt
5-7.5 Lakh20%10%
7.5-10 Lakh20%15%
10-12.5 Lakh30%20%
12.5-15 Lakh30%25%
Above 15 Lakh30%30%

Source: PRS India (https://www.prsindia.org/parliamenttrack/budgets/union-budget-2020-21-analysis)

Puducherry CbseNCERTSubjective· 3mImportance★★★★★est
19% · 11/57 Questions
✓ Free question

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 %).

  1. Restate the given data:
Taxable Income Slab (₹)Current Tax RateNew Tax Rate
0–2.5 LakhExempt (0%)Exempt (0%)
2.5–5 Lakh5%Exempt (0%)
5–7.5 Lakh20%10%
7.5–10 Lakh20%15%
10–12.5 Lakh30%20%
12.5–15 Lakh30%25%
Above 15 Lakh30%30%
  1. The xx-axis lists the 7 income slabs (discrete, ordered categories); the yy-axis is the tax rate (%), running 00 to 3030.
  2. 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).
  3. 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.
  4. 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.
✓Final answer

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.

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