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Chartered Accountants Act, 1949

An Act to make provision for the regulation of the profession of chartered accountants.

Sector ProfessionsPurpose Regulation & LicensingAct No. 38 of 1949Enacted 1 May 1949Ministry Corporate Affairs
All Acts Cost Accountants Act, 1959 Company Secretaries Act, 1980

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Index of provisions · 9 chapters, 60 sections

I PreliminaryII The Institute of Chartered Accountants of IndiaIII Council of the InstituteIV Register of MembersV MisconductVI Regional CouncilsVII PenaltiesVIIA Quality Review BoardVIII Miscellaneous

Chapter I Preliminary2 sections

  1. 1Short title, extent and commencement
  2. 2Interpretation

Chapter II The Institute of Chartered Accountants of India6 sections

  1. 3Incorporation of the Institute
  2. 4Entry of names in the Register of members
  3. 5Fellows and Associates
  4. 6Certificate of practice
  5. 7Members to be known as Chartered Accountants
  6. 8Disabilities

Chapter III Council of the Institute15 sections

  1. 9Constitution of the Council of the Institute
  2. 9ACoordination Committee
  3. 10Re-election or re-nomination to Council
  4. 10ASettlement of dispute regarding election
  5. 10BEstablishment of Tribunal
  6. 11Nomination in default of election or nomination
  7. 12President and Vice-President
  8. 13Resignation of membership and casual vacancies
  9. 14Duration and dissolution of Council
  10. 15Functions of the Council
  11. 15AImparting education by Universities and other bodies
  12. 15BFunctions of Institute
  13. 16Officers and employees, salary, allowances, etc
  14. 17Committees of the Council
  15. 18Finance of the Council

Chapter IV Register of Members2 sections

  1. 19Register of members
  2. 20Removal from the Register of members

Chapter V Misconduct13 sections

  1. 21Disciplinary Directorate
  2. 21ABoard of Discipline
  3. 21BDisciplinary Committee
  4. 21CAuthority, Disciplinary Committee, Board of Discipline and Director (Discipline) to have powers of civil court
  5. 21DTransitional provisions
  6. 22Professional or other misconduct defined
  7. 22AConstitution of Appellate Authority
  8. 22BTerm of office of Chairperson and members of Authority
  9. 22CAllowances and conditions of service of Chairperson and members of Authority
  10. 22DProcedure to be regulated by Authority
  11. 22EOfficers and other staff of Authority
  12. 22FResignation and removal of Chairperson and members
  13. 22GAppeal to Authority

Chapter VI Regional Councils1 section

  1. 23Constitution and functions of Regional Councils

Chapter VII Penalties6 sections

  1. 24Penalty for falsely claiming to be a member, etc
  2. 24APenalty for using name of the Council, awarding degrees of chartered accountancy, etc
  3. 25Companies not to engage in accountancy
  4. 26Unqualified persons not to sign documents
  5. 27Maintenance of branch offices
  6. 28Sanction to prosecute

Chapter VIIA Quality Review Board4 sections

  1. 28AEstablishment of Quality Review Board
  2. 28BFunctions of Board
  3. 28CProcedure of Board
  4. 28DTerms and conditions of services of Chairperson and members of Board and its expenditure

Chapter VIII Miscellaneous11 sections

  1. 29Reciprocity
  2. 29APower of Central Government to make rules
  3. 30Power to make regulations
  4. 30APowers of Central Government to direct regulations to be made or to make or amend regulations
  5. 30BRules, regulations and notifications to be laid before Parliament
  6. 30CPower of Central Government to issue directions
  7. 30DProtection of action taken in good faith
  8. 30EMembers, etc., to be public servants
  9. 31Construction of references
  10. 32Act not to affect right of accountants to practise as such in Part B States
  11. 33[Repealed.]

Schedules

  • The First Schedule
  • The Second Schedule

About this Act

The Chartered Accountants Act, 1949 regulates the chartered accountancy profession in India. It sets up the Institute of Chartered Accountants of India (ICAI) as a body corporate and lays down who may be a member, use the title of chartered accountant and practise.

The Institute acts through an elected Council, supported by Regional Councils. The Act also provides a disciplinary structure (Disciplinary Directorate, Board of Discipline and Disciplinary Committee), an Appellate Authority for appeals, and a Quality Review Board to review the quality of services rendered by members.

The Act has nine chapters, from Chapter I (preliminary) to Chapter VIII (miscellaneous), including Chapter VIIA on the Quality Review Board, and two Schedules.

Who it applies to

  • Members of ICAI, both Associates and Fellows
  • Chartered accountants in practice and their firms
  • Students and candidates seeking entry to the register of members
  • Companies and unqualified persons, who are barred from certain accountancy activities
  • Universities and other bodies offering education in the subject

Good to know

Key chapters
Chapter II (the Institute and membership), Chapter III (Council), Chapter V (misconduct and appeals) and Chapter VII (penalties).
Regulator
The Act is administered by the Ministry of Corporate Affairs, with the Central Government holding powers to make rules and issue directions (sections 29A and 30C).

Frequently asked questions

Which section requires a certificate of practice?

Section 6, Certificate of practice.

Where is professional or other misconduct defined?

Section 22, read with the First and Second Schedules.

Which section bars companies from practising as chartered accountants?

Section 25, Companies not to engage in accountancy.

Where is the Quality Review Board set up?

Section 28A, in Chapter VIIA. Its functions are in section 28B.

Which section provides for appeals against disciplinary orders?

Section 22G, Appeal to Authority; the Appellate Authority itself is constituted under section 22A.