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<h1>CBDT Circular: Additional Tax on Dividends from 1964-1968 to Encourage Capital Formation and Industrial Growth.</h1> The circular issued by the Central Board of Direct Taxes (CBDT) outlines the imposition of an additional tax on dividends declared or distributed by certain companies from 1964 to 1968. This extra levy, initially introduced by the Finance Act of 1964, aimed to encourage capital formation and industrial growth by discouraging excessive dividend distribution. The additional tax, initially a super-tax, evolved into an income tax levy over the years. The document details the computation method for each assessment year, highlighting the conditions under which the tax applies, particularly focusing on dividends exceeding 10% of the paid-up equity capital. Assessing officers are instructed to apply these rules in pending assessments.