ICAI CA Exemption Rules

Have you ever wondered, though you have scored above 60 marks in any of the papers in CA exams, be it Intermediate or Final, and yet why you haven’t been granted any exemption from appearing in that paper? Or are you one of those who wants to know what are the criteria for getting exemption in any of the papers in the CA Exams?

Then you are in the right place. Because, this article is an answer to all those lingering questions which you always had about Exemption in CA Exams.

But, before we discuss about the exemption criteria let’s talk about the passing criteria for CA Exams

Passing Criteria for CA Exams

As per ICAI guidelines, a candidate shall be declared to have passed in CA IPCC and CA Final by scoring a minimum of 40% marks in each individual subject and 50% marks in aggregate of all the subjects at one sitting either both the groups or a single group.

What is the Criteria for Obtaining Exemption?

A candidate shall be eligible to get exemption in a paper if he/she has scored a minimum of 60%. But this is not it. According to regulation 38A of the Chartered Accountants Regulations,1988 as published by Notification No. 1-CA(7)/51/2000 dated 14th August 2001, a candidate must also fulfill other rules in order to obtain exemption. The following are the other rules for obtaining exemption:

  1. In order to claim the exemption, candidate must have appeared in all the papers of that Group/Unit and must have failed in one or more papers of the same group/unit
  2. The exemption shall be valid only for the next three following examinations.
  3. The candidate shall be declared to have passed where he has scored a minimum of 40% marks in individual subject and 50% marks in aggregate of all the subjects including the paper in which he has secured exemption in the earlier attempt.
  4. Once the exemption has been claimed in a group/unit, the candidate will become ineligible to further claim any exemption in that group/unit until he/she has exhausted the exemption already granted.

What is the Maximum Number of Exemptions a Candidate can Avail?

Candidates can avail of exemption as many times as they can because there is no maximum number of limits to avail exemptions. However, a candidate cannot have exemption in more than one paper at a same time in the same group i.e no further exemption will be granted in the same group in any further examination even if the candidate scored 60+ until the exemption already allotted has been exhausted.

Is there any Procedure for Availing Exemption?

There is no such procedure for students to avail of the exemptions. The exemption is granted automatically by ICAI, and on the mark sheet, the same is mentioned. If the statement of marks which is issued by the Institute has the alphabet “E” marked against any paper, then this means this paper is already exempted, and exemption should be valid. However, the students are required to fill such details in their Exam Application Form so that it gets verified with the information already fed in the ICAI database.

From May 2014 exam onwards, ICAI has initiated that CA candidates can check the exemption status online whether the particular subject is valid for the next attempt or not. For the May attempt, the validity of exemption will be uploaded by 15th April. For the November attempt, the validity of the exemption will be uploaded by 15th October.

Can the students surrender Exemptions in Intermediate & CA Final Exams?

The answer to the question is Yes. But why do students surrender the exemption granted? The reason is for the Intermediate as well as Final Level, ICAI allots Ranks to the top 50 Candidates. And to obtain a Rank, you have to be present in all the Papers of both the Groups.

Now, if you are claiming exemption, it implies that you won’t be appearing for all the papers in the next attempt so your chances of claiming a Rank are all flat. It is for this purpose that Students surrender their Exemptions.

Claiming or Surrendering Exemption is a case to case decision depending on the Candidate.

Procedure for Surrendering Exemption in Intermediate & CA Final Exam

In case, a candidate opts for not availing the exemption, the following is the procedure for surrendering the exemption-

  1. The Candidate shall write a letter to the Additional Secretary (Examinations) informing him of his decision to surrender the Exemption and shall also enclose a copy of the Relevant Mark Sheet.
  2. On Receipt of the same, ICAI shall send a Proforma to the Candidate which is to be executed by the Candidate on a Non-Judicial Stamp Paper.
  3. Candidates shall note that the surrender of Exemption will become effective only after furnishing the requisite affidavit and on issue of confirmation letter to this effect by the Institute.

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