1. Short title, extent and commencement
(1) This Act may be called the Chartered
Accountants Act, 1949.
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(2) It extends to the whole of India 5[………...]
(3) It shall come into force on such date as the
Central Government may, by notification in
the Official Gazette, appoint in this behalf6.
2. Interpretation
(1) In this Act, unless there is anything repugnant
in the subject or context,−
(a) “associate” means an associate member
of the Institute;
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Footnotes given at the end of each Chapter.
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7[(aa) “Authority” means the Appellate
Authority constituted under Section
22A;
(aaa) “Board” means the Quality Review
Board constituted under Section 28A];
(b) “chartered accountant” means a person
who is a member of the Institute
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[……….];
(c) “Council” means the Council of the
Institute;
9[(ca) “firm” shall have the meaning assigned
to it in section 4 of the Indian
Partnership Act, 1932*
, and includes, -
(i) the limited liability partnership as
defined in clause (n) of subsection (1) of section 2 of the
Limited Liability Partnership Act,
2008**; or
(ii) the sole proprietorship,
registered with the Institute];
(d) “holder of a restricted certificate”
means a person holding a permanent or
temporary restricted certificate granted
by a Provincial Government under the
Restricted Certificates Rules, 1932;
(e) “Institute” means the Institute of
Chartered Accountants of India
constituted under this Act;
* No. 9 of 1932 ** No. 6 of 2009
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10[(ea) “notification” means a notification
published in the Official Gazette];
11[(eb) “partner” shall have the meaning
assigned to it in section 4 of the Indian
Partnership Act, 1932*
or in clause (q)
of sub-section (1) of section 2 of the
Limited Liability Partnership Act,
2008**, as the case may be;
(ec) “partnership” means –
(A) a partnership as defined in
section 4 of the Indian
Partnership Act, 1932*
; or
(B) a limited liability partnership
which has no company as its
partner];
(f) “prescribed” means prescribed by
regulations made under this Act;
(g) “Register” means the Register of
Members maintained under this Act;
(h) “registered accountant” means any
person who has been enrolled on the
Register of Accountants maintained by
the Central Government under the
Auditor’s Certificates Rules, 1932;
12[(ha) “specified” means specified by rules
made by the Central Government under
this Act];
* No. 9 of 1932 ** No. 6 of 2009
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13[(haa) “sole proprietorship” means an
individual who engages himself in the
practice of accountancy or offers to
perform services referred to in clauses
(ii) to (iv) of sub-section (2) ];
14[(hb) “Tribunal” means a Tribunal
established under sub-section (1) of
Section 10B;]
(i) ”year” means the period commencing
on the 1st day of April of any year and
ending on the 31st day of March of the
succeeding year.
(2) A member of the Institute shall be deemed “to
be in practice”, when individually or in
partnership with chartered accountants 15[in
practice], 16[or in partnership with members
of such other recognised professions as may
be prescribed], he, in consideration of
remuneration received or to be received,−
(i) engages himself in the practice of
accountancy; or
(ii) offers to perform or performs services
involving the auditing or verification of
financial transactions, books, accounts
or records, or the preparation,
verification or certification of financial
accounting and related statements or
holds himself out to the public as an
accountant; or
(iii) renders professional services or
assistance in or about matters of
principle or detail relating to accounting
procedure or the recording, presentation
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or certification of financial facts or data;
or
(iv) renders such other services as, in the
opinion17 of the Council, are or may be
rendered by a chartered accountant
18[in practice];
and the words “to be in practice” with their
grammatical variations and cognate expressions shall
be construed accordingly.
Explanation − An associate or a fellow of the Institute
who is a salaried employee of a chartered accountant 19[in
practice] or 20[a firm of such chartered accountants or firm
consisting of one or more chartered accountants and
members of any other professional body having prescribed
qualifications] shall, notwithstanding such employment, be
deemed to be in practice for the limited purpose of the
21[training of articled assistants].
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1 This Act received the assent of the Governor-General on 1st May,
1949 and was published in Part IV of the Gazette of India
Extraordinary dated 3rd May, 1949 and further amended by –
(i) The Chartered Accountants (Amendment) Act, 1959 (No.
15 of 1959) published in the Gazette of India dated 7th
May, 1960;
(ii) The Chartered Accountants (Amendment) Act, 2006 (No.
9 of 2006) which received the assent of the President on
the 22nd March, 2006 and was published in Part II
Section I of the Gazette of India, Extraordinary dated
23rd March, 2006;
(iii) The Chartered Accountants (Amendment) Act, 2011 (No.
3 of 2012) which received the assent of the President on
the 8th January, 2012, and was published in Part II
Section I of the Gazette of India Extraordinary dated 9th
January, 2012.
2&3 Substituted for the words, “profession of accountants” by the
Chartered Accountants (Amendment) Act, 1959 (No. 15 of 1959)
— Gazette of India dated 7th May, 1960.
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4 The original sub-section as published in the Gazette of India
Extraordinary dated 3rd May, 1949 was as follows :−
A“It extends to all the Provinces of India, and also to every
Acceding State to the extent to which the Dominion Legislature
has power to make laws for that State with respect to the
matters dealt with in this Act.”
AThis clause was substituted by the following :−
“It extends to the whole of India except the States of
Hyderabad, Jammu and Kashmir, Mysore and TravancoreCochin” by the Adaptation of Laws Order, 1950, published in
the Gazette of India Extraordinary dated 26th January, 1950.
5 The words, A
[“except the State of Jammu and Kashmir”] were
deleted with effect from 15th August, 1968 by the Central Laws
(Extension of Jammu and Kashmir) Act, 1968 (25 of 1968) —
Notification No. F1/13/67-K dated 2nd August, 1968 of Ministry
of Home Affairs.
AThese words were substituted for the words, “except the
States of Hyderabad, Jammu and Kashmir, Mysore and
Travancore-Cochin” by the Part B States (Laws) Act, 1951, No.
III of 1951, published in Part II Section 1 of the Gazette of India
Extraordinary dated 23rd February, 1951.
6 For the Government Notifications, please see Appendix No. (1).
7,10,12&14 Inserted by the Chartered Accountants (Amendment) Act,
2006 and came into force w.e.f. 8th August, 2006.
8 The words, “and who is in practice” were omitted by the
Chartered Accountants (Amendment) Act, 1959.
9,11,13&16 Inserted by the Chartered Accountants (Amendment) Act,
2011 and came into force w.e.f. 1st February, 2012.
15,18&19 Inserted by the Chartered Accountants (Amendment) Act, 1959.
17 Please see Appendix No. (2) and Regulation 191.
20 Substituted for the words, A[“a firm of such chartered
accountants]” by the Chartered Accountants (Amendment)
Act, 2011 and came into force w.e.f. 1st February, 2012.
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A
Substituted for the words, “a firm of chartered accountants”
by the Chartered Accountants (Amendment) Act, 1959.
21 Substituted, for the words, “training of articled clerks” by the
Chartered Accountants (Amendment) Act, 2006 and came into
force w.e.f. 8th August, 2006