Section 21A 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.
Section 21A creates the Board of Discipline, the body that deals with First Schedule misconduct. The section as in force is the 2006 text, sub-sections (1) to (4): a three-member Board, summary disposal, and penalties of reprimand, removal of the name for up to three months, or a fine up to rupees one lakh. The 2022 section 21A, sub-sections (1) to (8), is enacted by Act 12 of 2022 but not yet in force as per the ICAI 2022 edition and S.O. 2184(E) dated 10 May 2022.
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). The footnote to the 2022 section reads "came into force w.e.f." with a blank date, and the edition's cover lists section 21A as yet to be notified. A later commencement notification should be checked, together with later amendments and notifications.
In force: the Council constitutes a Board of Discipline of a presiding person with legal experience, two members (one elected by the Council from its members, one nominated by the Central Government) and the Director (Discipline) as Secretary. It follows summary disposal and, for First Schedule misconduct, after a hearing may reprimand, remove the name up to three months, or fine up to rupees one lakh. Enacted, not yet in force: one or more Boards, inquiry within ninety days, removal up to six months, fine up to two lakh rupees, and action against firms up to twenty-five lakh rupees.
Where section 21A fits
A complaint or information is examined first by the Director (Discipline) under section 21. If the alleged misconduct is in the First Schedule, the matter goes to the Board of Discipline. The Schedule's items are explained in the articles beginning with the First Schedule, Part I. Matters in the Second Schedule, or in both, go to the Disciplinary Committee under section 21B. If you are before the Board, a legal dispute resolution adviser can help you prepare for the hearing.
Section 21A as in force (2006 text)
Section 21A was inserted by the 2006 Amendment Act and came into force on 17 November 2006.
21A(1): composition. The Council shall constitute a Board of Discipline consisting of:
- (a) a person with experience in law and having knowledge of disciplinary matters and the profession, to be its presiding officer;
- (b) two members, one of whom shall be a member of the Council elected by the Council and the other nominated by the Central Government from among persons of eminence having experience in the field of law, economics, business, finance or accountancy; and
- (c) the Director (Discipline), who functions as the Secretary of the Board.
21A(2): procedure. The Board of Discipline follows summary disposal procedure in dealing with all cases before it.
21A(3): penalties. Where the Board is of the opinion that a member is guilty of a professional or other misconduct mentioned in the First Schedule, it shall afford the member an opportunity of being heard before making any order against him. It may thereafter take any one or more of these actions:
| Clause | Action |
|---|---|
| (a) | reprimand the member |
| (b) | remove the name of the member from the Register for a period up to three months |
| (c) | impose such fine as it may think fit, which may extend to rupees one lakh |
21A(4): cases with no prima facie case. The Director (Discipline) shall submit to the Board all information and complaints where he is of the opinion that there is no prima facie case. The Board may, if it agrees, close the matter, or, in case of disagreement, advise the Director to investigate further.
Three points on the in-force text. First, the member must be heard before any order. Second, the Board may take "any one or more" of the three actions, so a reprimand and a fine can go together. Third, the Board can remove the name only for a limited period, up to three months. By contrast, the Disciplinary Committee in section 21B may remove a name permanently or for such period as it thinks fit, but it deals with Second Schedule misconduct, or both Schedules. The definition of "Board of Discipline" in section 2(1) refers to the Board under section 21A(1).
Section 21A as enacted in 2022 (not yet in force)
The 2022 Amendment Act substitutes a longer section 21A. As per the edition and S.O. 2184(E), it is not yet in force.
| Sub-section | Rule as enacted |
|---|---|
| (1) | The Council shall, by notification, constitute one or more Boards of Discipline, each of: (a) a person who is not a member of the Institute, with experience in law and knowledge of disciplinary matters and the profession, nominated by the Central Government as Presiding Officer from a panel prepared by the Council; (b) one member of eminence in law, economics, business, finance or accountancy, not a member of the Institute, nominated by the Central Government from a panel; (c) one member nominated by the Council from a panel of members of the Institute; (d) an officer not below the rank of Deputy Secretary as Secretary. The Presiding Officer and the member under (b) may be the same for different Boards |
| (2) | The Board follows such procedure, including faceless proceedings and virtual hearings, as may be specified |
| (3) | On receipt of the preliminary examination report from the Director (Discipline), the Board requires the member or the firm to submit a written statement within twenty-one days, extendable by another twenty-one days in exceptional circumstances for reasons recorded in writing |
| (4) | The Board concludes its inquiry within ninety days of receiving the preliminary examination report |
| (5) | If the Board finds a member guilty of First Schedule misconduct, it may pass an order within thirty days of the finding, after a hearing: (a) reprimand and record it in the Register of members; (b) remove the name from the Register of members up to six months; (c) fine up to two lakh rupees |
| (6) | If a member who is a partner or owner of a firm has been repeatedly found guilty of First Schedule misconduct during the last five years, the Board may also: (a) prohibit the firm from activities relating to the profession of a chartered accountant in practice for up to one year; or (b) fine the firm up to twenty-five lakh rupees |
| (7) | If a member or firm fails to pay a fine within the specified time, the Council shall remove the name from the Register of members or Register of firms for such period as it thinks fit |
| (8) | The Presiding Officer and members are paid such allowances as may be prescribed |
Side-by-side
| Point | In force (2006) | Enacted 2022, not yet in force |
|---|---|---|
| Number of Boards | a Board | one or more Boards, by notification |
| Presiding officer | a person with legal experience | a non-member with legal experience nominated by the Central Government from a Council panel |
| Members | one elected by the Council from its members, one nominated by the Central Government | one non-member nominated by the Central Government, one nominated by the Council from a panel of members |
| Secretary | the Director (Discipline) | an officer not below Deputy Secretary |
| Procedure | summary disposal | as specified, including faceless proceedings and virtual hearings |
| Time limit | none stated | inquiry in ninety days; order in thirty days of the finding |
| Removal of name | up to three months | up to six months |
| Fine | up to rupees one lakh | up to two lakh rupees |
| Action against firms | none | firm prohibited up to one year or fined up to twenty-five lakh rupees, on repeated First Schedule misconduct in five years |
| Non-payment of fine | none stated | removal from the Register of members or firms |
The firm provisions of the 2022 text depend on Chapter IVA, the registration of firms, which is also not yet in force. See the article on sections 20A to 20D.
What happens after an order
A member aggrieved by an order of the Board of Discipline imposing a penalty may appeal to the Appellate Authority under section 22G; see the article on section 22G. The Authority is constituted under section 22A.
A worked example
A complaint alleges that a member allowed another person to practise in his name, a First Schedule matter. The Director (Discipline) forms a prima facie opinion and places it before the Board. Under the section in force, the Board hears the member and, if it finds the charge made out, may reprimand him, remove his name from the Register for up to three months, or fine him up to rupees one lakh, or combine them. If the Director instead finds no prima facie case, he must submit the complaint to the Board, which may close it or advise further investigation. Under the 2022 text, once in force, the Board would also fix a written statement within twenty-one days, finish the inquiry within ninety days and could take action against the firm.
Need help before the Board of Discipline?
Whether you are responding to a complaint, defending a member or advising a firm on the risk of First Schedule misconduct, the stage and the power of the Board decide the strategy. Our legal dispute resolution team can read your matter against section 21A as in force and the current notifications.
Key takeaways
- In force: a Board of three, with the Director (Discipline) as Secretary, deals with First Schedule misconduct by summary disposal.
- The Board may reprimand, remove the name for up to three months, or fine up to rupees one lakh, after a hearing.
- Where the Director finds no prima facie case, the Board may close the matter or advise further investigation.
- Enacted but not yet in force: ninety-day inquiry, removal up to six months, fine up to two lakh rupees and action against firms up to twenty-five lakh rupees.
- Appeal lies to the Appellate Authority under section 22G.
- A later commencement notification should be checked before relying on the 2022 text.
Read next
- Section 21B of the Chartered Accountants Act, 1949: the Disciplinary Committee
- Section 21 of the Chartered Accountants Act, 1949: the Disciplinary Directorate
- Section 22G of the Chartered Accountants Act, 1949: appeal to the Appellate Authority
- Section 21A of the Cost Accountants Act, 1959: the Board of Discipline
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.