Rules of Exemption in CA exam - Things you should know

Various Frequently Asked Questions and doubts regarding claiming exemption in CA IPCC and CA Final Examinations

Please note that this paper is merely an attempt to provide answers to questions on the subject, posed to us, by the candidates from time to time, to the extent possible and with reference to the extant scheme of examination.  However, this compilation is neither exhaustive not does it purport to be a source of complete information on the subject. Hence, candidates are advised, in their own interest, to refer to the “Guidance Notes” supplied along with the examination application form, besides referring to the Chartered Accountants Regulations, 1988.

1. What are the passing requirements for PCE/IPCE/Final exam?

a) A candidate shall ordinarily be declared to have passed in both the groups simultaneously, if he-

(i) secures at one sitting a minimum of 40% marks in each paper of each of the groups and minimum of 50% marks in the aggregate of all the papers of each of the groups; or

(ii) secures at one sitting a minimum of 40% marks in each paper of both the groups and a minimum of 50% marks in the aggregate of all the papers of both the groups taken together.

b) A candidate shall be declared to have passed in a Group, if he secures at one sitting a minimum of 40% marks in each paper of the Group and minimum of 50% marks in the aggregate of all the papers of that Group.

2. What are the rules regarding “exemption” and validity period?

a) A candidate who has appeared in all the papers comprised in a group/unit and fails in one or more papers comprised in that group/unit but secures a minimum of 60% of the marks in any paper or papers of that group/unit shall be eligible for exemption in that paper or papers in the next three following examinations.

b) He shall be declared to have passed in that group/unit if he secures at one sitting a minimum of 40% marks in each of the papers of that group/unit and a minimum of 50% of the total marks of all the papers of that group/unit including the paper/s in which he had secured a minimum of 60% marks in the earlier examination.

c) He/she shall not be eligible for any further exemption in the remaining paper(s) of that group/unit until he/she has exhausted the exemption already granted to him in that group/unit.

d) The implications of the above paragraph are clarified below:i. You must have appeared in all the papers of the group/unit.

ii. You must have failed in the group/unit and should have secured a minimum of 60 marks in any paper/s of the group/unit.

iii. The exemption is automatic and will be found indicated in the statement of marks issued by the Institute.

iv. An exemption is valid for three immediate succeeding exams and will be carried forward automatically for the next three examinations.

v. A candidate shall be declared to have passed in a Group/unit, if he secures at one sitting a minimum of 40 percent marks  in each paper of the Group/unit and a minimum of 50 percent marks in the aggregate of all the papers of that group/unit. For the purpose of arriving at the aggregate marks, 60 percent or more marks secured earlier will also be taken into account.

vi. As long as exemption in one or more paper(s) of a group/unit, brought forward from an earlier attempt is subsisting, no further exemption in any paper in that group/unit will be given, even if one secures 60% or more marks in any paper in that group/unit.

e) The above rules relating to “Exemption” are common to all the exams, i.e., PCE, IPCE, IPCE Units, ATE and Final, conducted by the Institute.

3. I secured exemption in Paper I of PCE/IPCE/Final exam in November 2009 exam.   I did not appear in the exams held in May 2010, November 2010 and also in May 2011.  I have submitted my exam application form for appearing in November 2011 exam.  Can I get the exemption in the said paper in November 2011 exam?

No.  The exemption obtained by you in November 2009 exam would last only for the next three exams, i.e. for May 2010, November 2010 and May 2011 exam, irrespective of the fact whether you appeared in those exams or not.  The exemption you obtained in November 2009 examination stands exhausted now and will not be valid for November 2011 exam onwards.  You will have to appear in the said paper once again in November 2011 exam.

4. I appeared, say, in Papers 1 and 2 of Group I and remained absent in the remaining paper(s) of Group I of PCE / IPCE / Final and secured more than 60% of the marks in both the papers. However my mark sheet does not show any exemption in those two papers.

To be eligible for exemption in any paper of a group in any of the exams (PCE/IPCE/Final), you should have appeared in all the papers comprised in that group.  In your case, though you obtained more than 60% marks in two papers, you will not be eligible for exemption in those two papers since you did not appear in all the papers of that group

5. How do I know that I am eligible for exemption in a paper?

The fact that you are eligible for exemption in a paper, will be found indicated in the statement of marks, issued by the Institute, by way of a symbol “#” against the marks of the paper(s) in which you had secured a minimum of 60% marks.

In your statement of marks, you will find the alphabet “E” marked against the marks of already exempted paper(s) carried forward from an earlier examination, provided the exemption is still valid.

6. I secured exemption in Paper V( Group II) of PCE/IPCE/Final in May 2011 exam.  I have submitted my exam application form for appearing in Group II of November 2011 exam. Is the exemption automatic or do I have to specifically mention in my exam application form that I got exemption in Paper V in May 2011 exam?

An exemption is valid for three immediate succeeding exams and will be carried forward automatically for the next three examinations. However, you are required to give details of the exemption(s) secured by you in the immediate three preceding exams, in your exam form, which will help us to cross check with our data base.

7. I secured exemption in Paper 3 (Group I) of PCE/IPCE/Final in November 2009 exam.   I appeared in Group I in May 2011 exam once again and secured more than 60% marks in Paper 2 of (Group I) of PCE/IPCE/Final. However, I did not get exemption in Paper 2 even though I secured more than 60% marks in that paper?  Why is it so?

As long as exemption in one or more paper(s) of a group/unit, brought forward from an earlier attempt is subsisting, no further exemption in any other paper in that group/unit will be given, even if you secure 60% or more marks in any other paper in that group/unit.  You will not be eligible for any further exemption in the remaining paper(s) of that group until you have exhausted the exemption already granted to you in that group.

The exemption that you secured in a paper in November 2009 exam lasted till May 2011 exam. Hence, you did not get any exemption in Paper 2 in May 2011 exam even though you secured more than 60% marks in that paper.

8. I secured exemption in Paper 3 (Group I) of PCE/IPCE/Final in November 2010 exam.   I intend to appear in Group II in November 2011 exam and applied for the same.  Can I get exemption in any paper in Group II in November 2011 exam if I secure more than 60% marks in any of the papers of Group II?

Yes.  You can get exemption in any of the papers of Group II in November 2011 exam.  The exemption that you secured in Paper 3 of Group I does not come in the way of your getting exemption in any paper of Group II. Please note that the rules relating to exemptions are applied group-wise.

However, you will not be eligible for any further exemption in the remaining paper(s) of Group I until you have exhausted the exemption already granted to you in that group.

9. I have already passed one group in PCE and converted to IPCE.  I am now a Unit candidate under IPCE.  Will I get the benefit of the exemption secured by me in PCE, in the corresponding papers of IPCE?

Yes.  The exemption in a paper or papers in a particular group granted earlier to a candidate of PCE shall continue to be valid, in the corresponding paper or papers under the IPCE/ATE,  for the unexpired chance(s).

10. What about exemption from appearing in any paper/s available to IPCE Unit candidates?

Unit scheme is meant for those candidates who have passed one of the groups in any of the following exams:

a) CA Intermediate under Para 2A of Schedule B of CA Regulations 1988( i.e Nov 1994 or later) or

b) PE II or

c) PCE who have converted to IPCE

Such a candidate is eligible for conversion to IPCE and may apply for conversion as a student of IPCE. For details, please visit the Board of Studies Announcements within the students section of the website www.icai.org

Group-wise exemption in IPCE by virtue of having passed one group in CA Intermediate examination under the syllabus as specified in paragraph 2A of Schedule B of Chartered Accountants Regulations 1988 ( i.e. Nov. 1994 or later) or PE II or PCE is not available in IPCE because the composition of papers in each group of IPCE is  different from that of Intermediate/ PE II / PCE. But paper wise exemption secured on the basis of 60% or more marks in a paper(s) of PCE is available for the corresponding paper(s) for the unexpired chance(s), as per details given below:

Papers of PE II passed	Papers of PCE passed	Paper-wise exemption in IPCE/ATE
Group I Paper 1 Accounting Paper 2:  Auditing Paper 3:  Business and Corporate Laws	Group II Paper 1:  Advanced Accounting Paper 2:  Auditing and Assurance Paper 3:  Law, Ethics and Communication	Group I Paper 1:  Accounting and Group II Paper 5:  Advanced Accounting Group II Paper 6:  Auditing and Assurance Group I Paper 2:  Business Law, Communication and Ethics
Group II Paper 4:  Cost Accounting and Financial Management Paper 5:  Income tax and Central Sales Tax Paper 6:  Information Technology	Group II Paper 4:  Cost Accounting and Financial Management Paper 5:  Taxation Paper 6:  Information Technology and Strategic Management	Group I Paper 3:  Cost Accounting and Financial Management Group 1 Paper 4:  Taxation Group II Paper 7: Information Technology and Strategic Management