ICAI CA Exemption Rules


Often students have seen confused about the ICAI Exemption rules and resultant they are misguided by their friends or other people. They are only aware that they’ll get an exemption if they score 60 marks in a single subject and nothing else. So many times, even after scoring more than 60% they use to ask why we have not granted an exemption?

Hence, today we have written an article that can solve all your queries and also make you aware of the CA Exemption Rules drafted by ICAI. But before that, let’s understand the passing requirement for IPCC and CA Final as well.

To know all the latest updates regarding ICAI CA IPCC and CA Final exemption rules, bookmark this page.

Passing Requirements for IPCC/Intermediate/CA Final

As per the 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.

Have a Look over the Rules of Exemption in CA Papers

  1. A candidate who has scored a minimum of 60% in a paper or paper(s) in a group/unit shall be eligible for exemption in such paper.
  2. In order to claim the exemption, candidates must have appeared in all the papers of that Group/Unit.
  3. The exemption shall be valid only for the next three following examinations.
  4. 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.
  5. 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.

CA IPCC, CA Final Exams Exemption Criteria

CA IPCC, CA final exams exemption criteria according to regulation 38A of the Chartered Accountants Regulations,1988 as published by Notification No. 1-CA(7)/51/2000 dated 14th August 2001 are given below.

  1. Candidates failed in one or more papers but were present in all the papers of a group.
  2. Candidates have scored a minimum of 60 percent marks in any paper or papers of that group.
  3. Students can attempt for those paper or any paper in that group in which he/she has scored below 60 marks.
  4. If candidates obtain a minimum of 40 percent in each subject and 50 percent in aggregate, and also scored 60 marks is their earlier exams, then only the candidates will be declared passed.
  5. The candidates should specifically mention exemption for each subject, and the exemption is valid for the next three following attempts.

Implications of the above Exemption Criteria

The implication of the above exemption criteria are as follows:

  1. Candidates must have appeared in all the papers of a group.
  2. Candidates must have failed in the group and must have scored at least 60 marks in any paper in that group.
  3. An exemption will be automatically carried forward for the next three examinations, and an exemption is valid only for three immediately succeeding exams.
  4. If a candidate has scored in one sitting minimum of 40% marks in each paper of the group, then he will be declared to be passed in a group. 

Also, Read- ICAI CA Intermediate Examination Course Guide

Maximum No. of Exemptions in CA IPCC & CA Final Exams

Candidates can avail of exemption as many times as they can because there is no maximum number of limits to avail exemptions. Chartered Account Act has stated the maximum number of limits to avail exemptions. Therefore, students can avail of any number of exemptions. Candidates can avail exception in all the CA IPCC exams and CA final exams, and this is mentioned to the ICAI.

CA IPCC & CA Final Exams- Procedure for Availing Exemption

To CA IPCC and CA Final students, the exemption is granted automatically by ICAI, and on the mark sheet, the same is mentioned. There is no such procedure for CA IPCC and CA Final students to avail of the exemptions. There is one important condition for exemption. If the candidates are awarded by the exemptions, then they are not eligible for any other exemption in the same group. If the candidates have used the exemption then they can use the other exemptions.

If the statement of marks which is issued by the institute has a #symbol against marks, then this means students have scored less than 60 marks in any of the papers.

If the statement of marks which is issued by the Institute has alphabet “E” marked against any paper, then this means this paper is already exempted, and exemption should be valid.

IPCC and CA Final Status Online

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 upload by 15th April. For the November attempt, the validity of the exemption will be uploaded by 15th October.

Now, Let’s Understand the above-stated Rules with the help of Questions and Answers –

Q1. I have scored exemption in Paper I in May 2018 but did not appear in Nov 2018, May 2019 and Nov 2019. Thereafter I submitted my application form to appear in May 2020 Examination. Whether I am eligible to claim such an exemption?

Ans. No, the ICAI has clearly stated that exemption in any paper is valid for the next three following attempts whether you have appeared in such or not.

In the above case, you scored exemption in May 2018 which can be carried forward for Nov 2018, May 2019 and Nov 2019 also. In May 2020, your exemption will automatically get exhausted.

Q2. I have scored 60% marks in Paper I and Paper II both but absent in the remaining papers. Whether I’ll be granted an exemption?

Ans. No, In order to claim exemption one has to appear in all the papers of that Group/Unit. In the above case, one has scored 60% marks in two subjects but still ineligible to claim exemption because of his absence in the remaining papers.

Q3. How do I know that I have allotted exemption in any Paper?

Ans. The students can check their exemption from the mark sheet issued to them. The papers which have been exempted shall be indicated by a symbol “#”.

Further, your Statement of Marks shall indicate “E” which indicates your exemption scored in an earlier attempt is still valid.

Q4. Do I need to claim Exemption through the Application Form or it will automatically be carried forward?

Ans. In such a case, ICAI has made clear that Exemption will get automatically carried forward till the number of examinations it is valid but still students are required to fill such details in their Exam Application Form so that it gets verified with the information already fed in ICAI database.

Q5. I scored 60+ Marks in May 2018 in Paper I and 60+ in May 2019 too in another paper. Whether exemption will be granted for the subjects attained in a single group but multiple attempts?

Ans. According to the ICAI guidelines, until the exemption claimed in earlier attempts has been exhausted, no further exemption will be allotted in the same group/unit even if you have scored more than 60 marks.

In the above case, one has already been granted an exemption in May 2018 in Paper I which will be valid till Nov 2019. Hence, no further exemption can be claimed by such a candidate in May 2019.

Q6. I have scored 60+ Marks in Paper I of Group I in May 2019 and allotted exemption in the same attempt but desire to appear in Group II in Nov 2019. If I scored 60+ marks in any paper in Group II in this attempt. Whether I’ll be eligible to claim such?

Ans. Yes, the rules stated above are group-wise and not course wise. Hence if you scored 60+ Marks in any paper of Group II in Nov 2019, you will be allotted exemption in such paper.

Q7. I have scored 60+ Marks in Paper I in May 2019, and allotted exemption in respect of the same. Further, I have applied for both the groups in Nov 2019. Whether I’ll be eligible for the rank in Nov 2017 Examination?

Ans. No, the students who desire to attain a rank have to qualify all the papers in one sitting without any carried forward exemption and also qualify such examination by placing their name in the top 50 students.

Conclusion – In the above article, we have discussed the IPCC and CA Final Passing percentage requirements and the rules stated by ICAI in respect of exemption in CA Papers. Besides that, we have also discussed the queries of students related to such rules.

Hope you find this article helpful, so share it with maximum people and stay in tune with us for more such useful things.

Also Read: 

How to Score Exemption in CA Final Audit and Law

How and What to Study in Law to Score Exemption in IPCC