The Chartered Accountants Act, 1949

(1) This Act may be called the Chartered Accountants Act, 1949. 1[(2) It extends to the whole of India 2 ***.] (3) It shall come into force on such date3 as the Central Government may, by notification in the Official Gazette, appoint in this behalf.

(1) In this Act, unless there is anything repugnant in the subject or context, (a) “associate” means an associate member of the Institute; 1(aa) “Authority” means the Appellate Authority constituted under section 22A; (aaa) “Board” means the Quality Review Board constituted under section 28A; 2(ab) “Board of Discipline” means the Board of Discipline constituted under sub-section (1) of section 21A; (b) “chartered accountant” means a person who is a member of the Institute 3***; ; 2(ba) “Coordination Committee” means the Coordination Committee constituted under section 9A; (bb) “Companies Act” means the Companies Act, 2013 (18 of 2013) or any other previous company law as defined in clause (67) of section 2 of the said Act; (c) “Council” means the Council of the Institute 2constituted under section 9; 4(ca) “firm” shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 (9 of 1932), and includes, (i) the limited liability partnership as defined in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); or (ii) the sole proprietorship, registered with the Institute; 2(cb) “Director (Discipline)” means the Director (Discipline) referred to in section 21 and includes Joint Director (Discipline); (cc) “Disciplinary Committee” means the Disciplinary Committee constituted under sub-section (1) of section 21B; (cd) “Disciplinary Directorate” means the Disciplinary Directorate established under sub-section (1) of section 21; (ce) “fellow” means a fellow member of the Institute;] (d) “holder of a restricted certificate” means a person holding a permanent or temporary restricted certificate granted by a State Government under the Restricted Certificates Rules, 1932; (e) “Institute” means the Institute of Chartered Accountants of India constituted under this Act; 5(ea) “notification” means a notification published in the Official Gazette and the term “notify” shall be construed accordingly; 1(eb) “partner” shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 (9 of 1932), or in clause (q) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009), as the case may be; (ec) “partnership” means (A) a partnership as defined in section 4 of the Indian Partnership Act, 1932 (9 of 1932); or (B) a limited liability partnership which has no company as its partner;] (f) “prescribed” means prescribed by regulations made under this Act; 6[(g) “Register” means the Register of members of the Institute maintained under section 19 or the Register of firms of the Institute maintained under section 20B, as the case may be;] (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; 1(ha) “specified” means specified by rules made by the Central Government under this Act; 4(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);] 2[(haaa) “Standing Committee” means a Standing Committee constituted under sub-section (1) of section 17;] (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 7[in practice 8[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 or certification of financial facts or data; or (iv) renders such other services as, in the opinion of the Council, are or may be rendered by a chartered accountant 7[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 7[in practice] or 9[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] 7[in practice] shall, notwithstanding such employment, be deemed to be in practice for the limited purpose of the 10[training of articled assistants].

(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 immoveable, and shall by its name sue or be sued.

(1) Any of the following persons shall be entitled to have his name entered in the 1[Register of members], namely,-- (i) any person who is a registered accountant or a holder of a restricted certificate at thecommencement of this Act; (ii) any person who has passed such examination and completed such training as may beprescribed for members of the Institute; (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 Auditors' Certificates Rules, 1932, fulfils such conditions as the Central Government may specify in this behalf; (iv) any person who, at the commencement of this Act, is engaged in the practice of accountancy in any Part B State and who, although not possessing the requisite qualifications to be registered as an accountant under the Auditors' Certificates Rules, 1932, fulfils such conditions as the Central Government may specify in this behalf; 2[(v) any person who has passed such other examination and completed such other training 3[without India] as is recognised by the Central Government or the Council 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 conditions as it may deem fit;] (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 the Auditors' 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 1[Register of members] without the payment of any entrance fee. 4[(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 notification, by the Council 5***: 6*****.] (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 1[Register of members].

(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 1[Register of members], 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. 2[(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 notification, by the Council 3***, 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: 4*****.]