3. Incorporation of the Institute
(1) All persons whose names are entered in the
Register at the commencement of this Act and
all persons who may hereafter have their
names entered in the Register under the
provisions of this Act, so long as they continue
to have their names borne on the said
Register, are hereby constituted a body
corporate by the name of the Institute of
Chartered Accountants of India, and all such
persons shall be known as members of the
Institute.
(2) The Institute shall have perpetual succession
and a common seal and shall have power to
acquire, hold and dispose of property, both
movable and immovable, and shall by its
name sue or be sued.
4. Entry of names in the Register
(1) Any of the following persons shall be entitled
to have his name entered in the Register,
namely :−
(i) any person who is a registered
accountant or a holder of a restricted
certificate at the commencement of this
Act;
(ii) any person who has passed such
examination and completed such training
as may be prescribed for members of
the Institute;
9
(iii) any person who has passed the
examination for the Government
Diploma in Accountancy or an
examination recognised as equivalent
thereto by the rules for the award of the
Government Diploma in Accountancy
before the commencement of this Act,
and who, although not duly qualified to
be registered as an accountant under
the Auditor’s Certificates Rules, 1932,
fulfils such conditions as the Central
Government may specify in this behalf;1
(iv) any person who, at the
commencement of this Act, is engaged
in the practice of accountancy in any
2[Part B State] and who, although not
possessing the requisite qualifications to
be registered as an accountant under
the Auditor’s Certificates Rules, 1932,
fulfils such conditions as the Central
Government may specify in this
behalf;3
4[(v) any person who has passed such other
examination and completed such other
training without India as is recognised
by the Central Government or the
Council5 as being equivalent to the
examination and training prescribed for
members of the Institute:
Provided that in the case of any
person who is not permanently residing
in India, the Central Government or the
Council, as the case may be, may
impose such further conditions6 as it
may deem fit;]
10
(vi) any person domiciled in India who at
the commencement of this Act is
studying for any foreign examination and
is at the same time undergoing training,
whether within or without India, or,
who, having passed such foreign
examination, is at the commencement
of this Act undergoing training, whether
within or without India:
Provided that any such examination
or training was recognised before the
commencement of this Act for the
purpose of conferring the right to be
registered as an accountant under
Auditor’s Certificates Rules, 1932, and
provided further that such person
passes the examination or completes
the training within five years after the
commencement of this Act.
(2) Every person belonging to the class
mentioned in clause (i) of sub-section (1)
shall have his name entered in the Register
without the payment of any entrance fee.
7
[(3) Every person belonging to any of the classes
mentioned in clauses (ii), (iii), (iv), (v) and
(vi) of sub-section (1) shall have his name
entered in the Register on application being
made and granted in the prescribed manner
and on payment of such fees, as may be
determined, by notification8, by the Council,
which shall not exceed rupees three
thousand:
Provided that the Council may, with the prior
approval of the Central Government,
determine the fee exceeding rupees three
11
thousand, which shall not in any case exceed
rupees six thousand.]
(4) The Central Government shall take such steps
as may be necessary for the purpose of having
the names of all persons belonging to the class
mentioned in clause (i) of sub-section (1)
entered in the Register.
5. Fellows and Associates
(1) The members of the Institute shall be divided
into two classes designated respectively as
associates and fellows.
(2) Any person shall, on his name being entered in
the Register, be deemed to have become an
associate member of the Institute and be
entitled to use the letters A.C.A. after his
name to indicate that he is an associate
member of the Institute of Chartered
Accountants.
9
[(3) A member, being an associate who has been in
continuous practice in India for at least five
years, whether before or after the
commencement of this Act, or whether partly
before and partly after the commencement of
this Act, and a member who has been an
associate for a continuous period of not less
than five years and who possesses such
qualifications as the Council may prescribe
with a view to ensuring that he has
experience equivalent to the experience
normally acquired as a result of continuous
practice for a period of five years as a
chartered accountant shall, on payment of
such fees, as may be determined, by
notification10, by the Council, which shall not
exceed rupees five thousand and on
12
application made and granted in the prescribed
manner, be entered in the Register as a fellow
of the Institute and shall be entitled to use the
letters F.C.A. after his name to indicate that
he is a fellow of the Institute of Chartered
Accountants:
Provided that the Council may with the prior
approval of the Central Government,
determine the fee exceeding rupees five
thousand, which shall not in any case exceed
rupees ten thousand.]
6. Certificate of practice
(1) No member of the Institute shall be entitled
to practise 11[whether in India or elsewhere]
unless he has obtained from the Council a
certificate of practice:
12[Provided that nothing contained in this
sub-section shall apply to any person who,
immediately before the commencement of this
Act, has been in practice as a registered
accountant or a holder of a restricted
certificate until one month has elapsed from
the date of the first meeting of the Council.]
13[(2) Every such member shall pay such
annual fee for his certificate as may be
determined, by notification14, by the Council,
which shall not exceed rupees three thousand,
and such fee shall be payable on or before
the 1st day of April in each year:
Provided that the Council may with the prior
approval of the Central Government,
determine the fee exceeding rupees three
thousand, which shall not in any case exceed
rupees six thousand.]
13
15[(3) The certificate of practice obtained
under sub-section (1) may be cancelled by the
Council under such circumstances as may be
prescribed.]
7. Members to be known as Chartered
Accountants
16[Every member of the Institute in practice shall,
and any other member may, use the designation of a
chartered accountant and no member using such
designation shall use any other description, whether in
addition thereto or in substitution therefor:]
Provided that nothing contained in this Section shall
be deemed to prohibit any such person from adding any
other description or letters to his name, if entitled thereto,
to indicate membership of such other Institute of
accountancy, whether in India or elsewhere, as may be
recognised17 in this behalf by the Council, or any other
qualification that he may possess, or to prohibit a firm, all
the partners of which are members of the Institute and in
practice, from being known by its firm name as Chartered
Accountants.
8. Disabilities
Notwithstanding anything contained in Section 4, a
person shall not be entitled to have his name entered in or
borne on the Register if he −
(i) has not attained the age of twenty-one years
at the time of his application for the entry of
his name in the Register; or
18[(ii) is of unsound mind and stands so adjudged by
a competent Court;] or
(iii) is an undischarged insolvent; or
14
(iv) being a discharged insolvent, has not
obtained from the Court a certificate stating
that his insolvency was caused by misfortune
without any misconduct on his part; or
(v) has been convicted by a competent Court
whether within or without India, of an offence
involving moral turpitude and punishable with
transportation or imprisonment or of an
offence, not of a technical nature, committed
by him in his professional capacity unless in
respect of the offence committed he has either
been granted a pardon or, on an application
made by him in this behalf, the Central
Government has, by an order in writing,
removed the disability; or
19[(vi) has been removed from membership of the
Institute on being found on inquiry to have
been guilty of professional or other
misconduct:
Provided that a person who has been removed
from membership for a specified period, shall not be
entitled to have his name entered in the Register
until the expiry of such period.]
____________________
1 For the Government Notification, please see Appendix No. (3).
2 Substituted for the words, “Acceding State” by the Part B
States (Laws) Act, 1951 (III of 1951) published in Part II
Section 1 of the Gazette of India Extraordinary dated 23r d
Feb rua ry , 1951.
3 For the Government Notifications, please see Appendix No. (4).
4 Substituted for clause (v) of sub-section (1) of Section 4 given
below by the Chartered Accountants (Amendment) Act, 1955,
(Act No. 40 of 1955), published in Part II Section 1 of the
Gazette of India Extraordinary dated 22nd October, 1955 :−
15
"(v) Any person who has passed such other examination
and completed such other training without India as is
recognised by the Council as equivalent to the examination
and training prescribed for members of the Institute:
Provided that in the case of any person who is not permanently
residing in India, the Council may prescribe such further
conditions as it may think fit;”
5 For the Resolution of the Council, please see Appendices No. (5)
and (6).
6 For the Resolution of the Council, please see Appendices No.
(5), (6) and (7).
7 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 8th August,
2006 :−
“(3) Every person belonging to any of the classes mentioned
in clauses (ii), (iii), (iv), (v) and (vi) of sub-section (1) shall
have his name entered in the Register on application being
made and granted in the prescribed manner and on payment of
the prescribed fee, which shall not exceed rupees three hundred
in any case.”
8 For the notification, please see Appendix No. (8).
9 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 8th August,
2006 :−
A[“(3) A member, being an associate who has been in
continuous practice in India for at least five years, whether
before or after the commencement of this Act, or whether partly
before and partly after the commencement of this Act, and a
member who has been an associate for a continuous period of
not less than five years and who possesses such qualifications as
the Council may prescribe with a view to ensuring that he has
experience equivalent to the experience normally acquired as a
result of continuous practice for a period of five years, as a
chartered accountant shall, on payment of the prescribed
entrance fee, which shall not exceed rupees two hundred in any
case, and on application made and granted in the prescribed
manner, be entered in the Register as a fellow of the Institute
and shall be entitled to use the letters F.C.A. after his name
to indicate that he is a fellow of the Institute of Chartered
Accountants.”]
16
AThis sub-section (3) was earlier substituted, for the following,
by the Chartered Accountants (Amendment) Act, 1959 :−
“(3) An associate who has been in continuous practice in
India for at least five years, whether before or after the
commencement of this Act, or whether partly before and partly
after the commencement of this Act, shall, on payment of the
prescribed entrance fee which shall not exceed rupees two
hundred in any case, and on application made and granted in
the prescribed manner, be entered in the Register as a fellow
of the Institute and shall be entitled to use the letters F.C.A.
after his name to indicate that he is a fellow of the Institute of
Chartered Accountants.”
10 For the notification, please see Appendix No. (9).
11 Inserted by the Chartered Accountants (Amendment) Act, 1959.
12 Inserted by Section 2 of the Chartered Accountants
(Amendment) Ordinance, 1949, Ordinance No. XV of 1949 -
Gazette of India Extraordinary dated 1st July, 1949.
13 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 8th August,
2006 :−
A[“(2) Every such member shall pay such annual fee for his
certificate as may be prescribed, and such fee shall be payable
on or before the 1st day of April in each year.”]
AThis sub-section (2) was earlier substituted, for the following,
by the Chartered Accountants (Amendment) Act, 1959 :−
"(2) Every such member shall pay such annual fee, differing
in amount according as he is an associate or a fellow of the
Institute, for his certificate as may be prescribed, and such fee
shall be due on the 1st day of April in each year."
14 For the notification, please see Appendix No. (10).
15 Inserted by the Chartered Accountants (Amendment) Act, 2006
and came into force w.e.f. 8th August, 2006.
16 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 1959 :−
“Every member of the Institute in practice shall be designated as
a Chartered Accountant and no person practising the profession
17
of accountancy in India shall use any other designation
whether in addition thereto or in substitution therefor:”
17 For the Resolution of the Council, please see Appendix No. (11)
and Regulation 191.
18 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 1959 :−
"(ii) has been adjudged by a competent Court to be of
unsound mind;”
19 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 1959 :−
"(vi) has been found on inquiry to have been guilty of
conduct which renders him unfit to be a member of the
Institute."