Sections 1 and 3 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 1 and 3 are the opening provisions of the Chartered Accountants Act, 1949. Section 1 gives the Act its name, says where it applies and leaves its start date to a Government notification. Section 3 turns every person on the Register of members into one body corporate, the Institute of Chartered Accountants of India, with perpetual succession and a common seal.
This article is as per the Act as printed in the ICAI edition of 2022 (amended up to the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022). Later amendments and notifications should be checked before you rely on any provision.
Section 1 names the law (the Chartered Accountants Act, 1949), extends it to the whole of India and brings it into force on a date the Central Government appoints by notification. Section 3 makes everyone on the Register of members a body corporate called the Institute of Chartered Accountants of India, which has perpetual succession and a common seal, can hold and dispose of property, and can sue and be sued in its own name. It matters to every member, student and client who deals with the Institute.
The long title and the preamble
Before section 1 the Act carries a long title and a preamble. The long title says it is "An Act to make provision for the regulation and development of the profession of Chartered Accountants". The word "development" was added by the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022 (12 of 2022) and came into force on 10 May 2022. Earlier, the 1959 Amendment Act had replaced the words "profession of accountants" with "profession of chartered accountants".
The preamble records the reason for the law: it is expedient to make provision for the regulation of the profession of chartered accountants and, for that purpose, to establish an Institute of Chartered Accountants. The preamble does not create rights or duties by itself, but it explains why the rest of the Act is built around one professional body.
Section 1(1): the short title
Section 1(1) says the Act may be called the Chartered Accountants Act, 1949. It is Act 38 of 1949. The edition notes that it received the assent of the Governor-General on 1 May 1949 and was published in the Gazette of India Extraordinary dated 3 May 1949. The same footnote lists the later Amendment Acts of 1959 (15 of 1959), 2006 (9 of 2006), 2011 (3 of 2012) and 2022 (12 of 2022). If you need to know which of those amendments applies to a particular question, a legal consultation can map the provision to the facts.
Section 1(2): extent
Section 1(2) is printed as "It extends to the whole of India" followed by a blank bracket. The footnotes explain the history. The original 1949 wording extended the Act to the Provinces and Acceding States. The Adaptation of Laws Order, 1950 and then the Part B States (Laws) Act, 1951 changed the list of excluded States, and the words "except the State of Jammu and Kashmir" were deleted with effect from 15 August 1968 by the Central Laws (Extension of Jammu and Kashmir) Act, 1968. So the sub-section now reads as an extension to the whole of India, as printed.
Section 1(3): commencement
Section 1(3) says the Act comes into force on such date as the Central Government may appoint by notification in the Official Gazette. The footnote points to Appendix No. (1) of the edition, which prints the notification appointing 1 July 1949 as the date. The same Appendix also prints the 2006 notifications that brought the 2006 Amendment Act into force in stages. The Appendix is a compilation by ICAI and is not part of the Act itself.
The 2022 Amendment Act has its own commencement story. S.O. 2184(E) dated 10 May 2022 brought most of its provisions into force from that date, but not all. The long title and the new definitions in section 2 are in force. Section 16(1) as substituted, Chapter IVA (sections 20A to 20D), sections 21, 21A, 21B, 21D and 22 as substituted, the 2022 changes in section 22G and a few Schedule references are enacted but not yet in force as per the edition and that notification. Each is explained in its own article, starting with the definitions in section 2(1). A later commencement notification should be checked.
Section 3(1): the Institute as a body corporate
Section 3(1) names who forms the Institute. All persons whose names were entered in the Register at the commencement of the Act, and all persons who afterwards have their names entered in the Register under the Act, so long as their names stay on it, are constituted a body corporate by the name of the Institute of Chartered Accountants of India. All such persons are known as members of the Institute.
Three consequences follow from the wording:
- Membership and the Register are tied together. A person is a member while the name is borne on the Register, not merely because of an examination result.
- The Institute is a statutory body created by Parliament, not a society registered under another law.
- When a name is removed from the Register under the Act, the person stops being a member. Who may have a name entered is the subject of section 4.
Section 3(2): perpetual succession, common seal and property
Section 3(2) gives the Institute four attributes. It has perpetual succession, so its existence does not depend on who the members are at any time. It has a common seal. It has power to acquire, hold and dispose of property, both movable and immovable. And it can sue or be sued by its name. In practice this means a contract, a claim or a legal proceeding involving the Institute is brought in the Institute's name, not in the names of its Council members or office-bearers.
A map of the ten Chapters and two Schedules
The Act is arranged in ten Chapters, followed by two Schedules:
| Chapter | Heading | Sections |
|---|---|---|
| I | Preliminary | 1 and 2 |
| II | The Institute of Chartered Accountants of India | 3 to 8 |
| III | Council of the Institute | 9 to 18 |
| IV | Register of members | 19 and 20 |
| IVA | Registration and Register of firms | 20A to 20D (not yet in force) |
| V | Misconduct | 21 to 22G |
| VI | Regional Councils | 23 |
| VII | Penalties | 24 to 28 |
| VIIA | Quality Review Board | 28A to 28D |
| VIII | Miscellaneous | 29 to 33 (section 33 is printed as repealed) |
The First Schedule lists the professional misconduct that goes to the Board of Discipline, and the Second Schedule lists the professional or other misconduct that goes to the Disciplinary Committee. The Schedules are read with section 22 of the Act.
Need help with a question on the Chartered Accountants Act?
If you are a member, a firm or a company dealing with the Institute and need a plain reading of how the Act applies to your facts, a legal consultation is a sensible first step. We read the provision, check the current notifications and tell you what applies.
Key takeaways
- Section 1(1) names the law the Chartered Accountants Act, 1949 (Act 38 of 1949).
- Section 1(2) extends it to the whole of India; the Jammu and Kashmir words were deleted from 15 August 1968.
- Section 1(3) leaves the start date to a Central Government notification; Appendix No. (1) of the edition prints it as 1 July 1949.
- Section 3(1) makes the persons on the Register a body corporate, the Institute of Chartered Accountants of India.
- Section 3(2) gives the Institute perpetual succession, a common seal, power over property and the capacity to sue and be sued.
- Part of the 2022 Amendment is not yet in force; check later notifications.
Read next
- Section 2(1) of the Chartered Accountants Act, 1949: definitions
- Section 4 of the Chartered Accountants Act, 1949: entry in the Register of members
- Sections 1-3 of the Cost Accountants Act, 1959: short title, extent and commencement
- Introduction to the Indian Partnership Act, 1932
Disclaimer: Based on the Chartered Accountants Act, 1949 as printed in the ICAI edition of 2022 (amended up to Act 12 of 2022), read with S.O. 2184(E) dated 10 May 2022, which brought only part of the 2022 amendments into force, as consulted on 3 October 2026. Regulations, rules, Council guidelines, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.