The Chartered Accountants Act, 1949

The Chartered Accountants Act, 1949: A Summary

The Chartered Accountants Act, 1949, is an Indian law that regulates the profession of chartered accountancy in India. The Act aims to make provision for the regulation and development of the profession.

Key Features:

• The Institute of Chartered Accountants of India (ICAI) was established under this Act.


• The ICAI has perpetual succession and a common seal, allowing it to acquire, hold, and dispose of property.


• Members of the ICAI are divided into two classes: associates and fellows.


• A certificate of practice is required for members to practice chartered accountancy in India or elsewhere.


• Disabilities include not attaining the age of 21 years, being an undischarged insolvent, or having been convicted of an offence involving moral turpitude.

Council Structure:

• The Council of ICAI consists of at least 32 elected members from among the fellows of the Institute chosen in specified regional constituencies.


• Not more than eight nominated members are also part of the Council.


• A Coordination Committee is established to develop and harmonize the professions of Chartered Accountants, Cost Accountants, and Company Secretaries.

Dispute Resolution:

• In case of any dispute regarding an election under section 9, the aggrieved person can make an application within thirty days to the Secretary of the Institute.


• The Central Government establishes a Tribunal to decide such disputes, with a Presiding Officer and two other Members.

Penalties:

• Penalty for falsely claiming to be a member or using the name of the Council, awarding degrees of chartered accountancy, etc., is provided under sections 24A and 25.


• Companies not engaging in accountancy are prohibited under section 25.