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CHAPTER IV
IVA
V
22C.
22D.
22E.
22F.
24.
24A.
30B. Rules, regulations and notifications to be laid before Parliament
30C. Power of Central Government to issue directions
30D. Protection of action taken in good faith
30E. Members, etc., to be public servants 71
31. Construction of references
32. Act not to affect right of accountants to practise as such in part B States 71
33. [Omitted by the Repealing and Amending Act, 1952] 71
SAMPLE CHAPTER
Chartered Accountants Act, 1949
[38 OF 1949]
An Act to make provision for the 1[regulation and development] of the 2[profession of chartered accountants].
WHEREAS it is expedient to make provision for the 1[regulation and development] of the 2[profession of chartered accountants] and for that purpose to establish an Institute of Chartered Accountants; It is hereby enacted as follows:—
CHAPTER I
PRELIMINARY
Short title, extent and commencement.
1. (1) This Act may be called the Chartered Accountants Act, 1949.
(2) It extends to the whole of India 3[***].
(3) It shall come into force on such date* as the Central Government may, by notification in the Official Gazette, appoint in this behalf.
COMMENTS
SECTION NOTES
1.1 Extent of Application
The Act is applicable across the entire territory of India.
* With effect from 1-7-1949.
1. Substituted for “regulation” by the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022, w.e.f. 10-5-2022.
2. Substituted for “profession of accountants” by the Chartered Accountants (Amendment) Act, 1959, w.e.f. 1-7-1959.
3. Words “except the State of Jammu and Kashmir” omitted by the Central Laws (Extension to Jammu and Kashmir) Act, 1968, w.e.f. 15-8-1968. Earlier, the quoted words were substituted by the Part B States (Laws) Act, 1951, w.e.f. 22-2-1951.
Interpretation.
2. (1) In this Act, unless there is anything repugnant in the subject or context,—
(a) “associate” means an associate member of the Institute;
4[(aa) “Authority” means the Appellate Authority constituted under section 22A;
(aaa) “Board” means the Quality Review Board constituted under section 28A;]
5[(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 6[***];
5[(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 5[constituted under section 9];
7[(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;]
5[(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;
4. Inserted by the Chartered Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006.
5. Inserted by the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022, w.e.f. 10-5-2022.
6. Words “and who is in practice” omitted by the Chartered Accountants (Amendment) Act, 1959, w.e.f. 1-7-1959.
7. Inserted by the Chartered Accountants (Amendment) Act, 2011, w.e.f. 1-2-2012.
CHARTERED ACCOUNTANTS ACT, 1949 S. 2
(e) “Institute” means the Institute of Chartered Accountants of India constituted under this Act;
8[(ea) “notification” means a notification published in the Official Gazette and the term “notify” shall be construed accordingly;]
9[(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;
10[(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;
11[(ha) “specified” means specified by rules made by the Central Government under this Act;
9[(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);]
12[(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;]
8. Substituted by the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022, w.e.f. 10-5-2022. Prior to its substitution, clause (ea) as inserted by the Chartered Accountant (Amendment) Act, 2006, w.e.f. 8-8-2006 read as under: ‘(ea) “notification” means a notification published in the Official Gazette;’
9. Inserted by the Chartered Accountants (Amendment) Act, 2011, w.e.f. 1-2-2012.
10. Substituted by the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022, w.e.f. 10-5-2022. Prior to its substitution, clause (g) read as under:
‘(g) “Register” means the Register of members maintained under this Act;’
11. Inserted by the Chartered Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006.
12. Inserted by the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022, w.e.f. 10-5-2022.
S. 2 CHARTERED ACCOUNTANTS ACT, 1949 4
(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 13[in practice] 14[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 15[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 15[in practice] or 16[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 17[training of articled assistants].
COMMENTS
SECTION NOTES
2.1 Contextual Application
The definitions provided in this section apply throughout the Act unless a different meaning is apparent from the context. This rule allows the terms to have flexible meanings if the context suggests otherwise.
13. Inserted by the Chartered Accountants (Amendment) Act, 1959, w.e.f. 1-7-1959.
14. Inserted by the Chartered Accountants (Amendment) Act, 2011, w.e.f. 1-2-2012.
15. Inserted by the Chartered Accountants (Amendment) Act, 1959, w.e.f. 1-7-1959.
16. Substituted for “a firm of such chartered accountants” by the Chartered Accountants (Amendment) Act, 2011, w.e.f. 1-2-2012. Earlier, the quoted words were substituted by the Chartered Accountants (Amendment) Act, 1959, w.e.f. 1-7-1959.
17. Substituted for “training of articled clerks” by the Chartered Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006.
CHARTERED ACCOUNTANTS ACT 1949 – BARE ACT WITH SECTION NOTES
AUTHOR : Taxmann's Editorial Board
PUBLISHER : Taxmann
DATE OF PUBLICATION : January 2026
EDITION : 2026 Edition
ISBN NO : 9789371262590
NO. OF PAGES : 92
BINDING TYPE : Paperback
Rs. 135
DESCRIPTION
Chartered Accountants Act 1949 [Bare Act with Section Notes] by Taxmann is an authoritative statutory publication presenting the complete legal framework governing the regulation, development, and discipline of the chartered accountancy profession in India. The Act, which establishes and regulates the Institute of Chartered Accountants of India (ICAI), forms the foundation of professional standards, membership, practice rights, disciplinary control, and institutional governance of chartered accountants. This 2026 Edition reproduces the verbatim and unabridged text of the Chartered Accountants Act 1949, as amended up to date, and is supplemented with concise, section-wise explanatory notes. These Section Notes aid readers in understanding legislative intent, procedural requirements, compliance obligations, and the profession's evolving regulatory framework, while preserving the statutory character of a Bare Act. This book is intended for the following audience:
• Chartered Accountants (ACA/FCA)
• CA Students & Faculty
• Disciplinary Authorities & Regulators
• Advocates & Legal Professionals
• Corporates, Audit Firms & Compliance Teams
• Judicial Officers & Researchers
The Present Publication is the 2026 Edition, covering the amended and updated text of the Chartered Accountants Act [Act No. 38 of 1949], with the following noteworthy features:
• [Complete Text of the Chartered Accountants Act 1949] Contains the full and unabridged text of the SAct, including all Chapters and Schedules
• [Section Notes] Each section is supported by concise explanatory notes clarifying statutory meaning, scope, procedure, and compliance implications
• [Latest Amendments Incorporated] Reflects all amendments to date, including changes introduced by the Chartered Accountants, Cost and Works Accountants and Company Secretaries (Amendment) Act 2022
• [Pre-amendment Provisions] Incorporates earlier versions of amended provisions through amendment footnotes to explain the pre-amendment legal position
• [Practical Insights & Judicial Interpretations] Select judicial precedents are summarised within the Section Notes to illustrate statutory interpretation
• [User-friendly Presentation] Clear typography, structured layout, detailed contents, page headers, and footnotes for quick reference
• [Concise Subject Index & Chapter Coverage] A comprehensive Subject Index enables fast and accurate location of relevant provisions
• [High Reference Value] Suitable for professional reference, disciplinary matters, academic study, examination revision, and regulatory compliance
