Sections 23 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 23 allows Regional Councils to advise the Council. Sections 24 and 25 are the Act's penalty provisions against outsiders and members who misuse the title "cost accountant" or the Institute's name. The 2022 Amendment Act raised the fines in section 24 and the punishment in section 25(2), and those changes are in force. The Act was called the Cost and Works Accountants Act, 1959 until 10 May 2022.
Section 24: a non-member who claims to be a member or uses the designation cost accountant, or a member without a certificate of practice who claims to be in practice or practises, faces a fine up to one lakh rupees on first conviction, and on a later conviction imprisonment up to six months or a fine up to five lakh rupees, or both. Section 25: misusing the Institute's name or seal, awarding look-alike degrees, or seeking to regulate the profession is punishable with imprisonment up to six months or a fine of one lakh to five lakh rupees, or both, and on a later conviction imprisonment up to one year or a fine of two lakh to ten lakh rupees.
How this article reads the Act
This article follows the Act as printed by the Institute (as amended in 2011), read with the 2022 Amendment Act to the extent brought into force by S.O. 2184(E) dated 10 May 2022. Sections 63 and 64 of that Act, which amend sections 24 and 25(2), are in force. Later amendments and notifications should be checked.
Section 23: Regional Councils
Section 23(1). To advise and assist it on matters concerning its functions, the Council may constitute Regional Councils, as and when it deems fit, for one or more of the regional constituencies specified by the Central Government under section 9(2)(a).
Section 23(2). Regional Councils are constituted in such manner and exercise such functions as may be prescribed. The 2022 Act lists this among the matters on which the Council makes regulations; the detail is in the regulations and is not set out here. The Regional Council has only an advisory and assisting role under the Act.
Section 24: penalty for falsely claiming to be a member
Section 24 punishes any person who:
| Limb | Conduct |
|---|---|
| (i)(a) | Not being a member of the Institute, represents that he is a member |
| (i)(b) | Not being a member, uses the designation "cost accountant" |
| (ii) | Being a member but not having a certificate of practice, represents that he is in practice or practises as a cost accountant |
The penalty, as amended in 2022:
| Conviction | Before 2022 | Since 10 May 2022 |
|---|---|---|
| First | Fine up to one thousand rupees | Fine up to one lakh rupees |
| Any subsequent | Imprisonment up to six months, or fine up to five thousand rupees, or both | Imprisonment up to six months, or fine up to five lakh rupees, or both |
Section 63 of the 2022 Act made these changes in force from 10 May 2022. Notice how the three limbs fit with other sections: limb (i)(b) protects the designation in section 7; limb (ii) enforces section 6(1). See our articles on section 6 to 8 and section 2.
Prosecution. Under section 29, no person is prosecuted under the Act except on a complaint made by or under the order of the Council or the Central Government; see our article on sections 28 and 29.
Section 25: using the Council's name, awarding degrees, regulating the profession
Section 25(1). Save as otherwise provided in the Act, no person shall:
- (i) use a name or common seal identical with that of the Institute, or so nearly resembling it as to deceive or be likely to deceive the public;
- (ii) award any degree, diploma or certificate or bestow any designation that indicates or purports to indicate the position or attainment of any qualification or competence in cost accountancy similar to that of a member of the Institute; or
- (iii) seek to regulate in any manner whatsoever the profession of cost accountants.
Section 25(2), as substituted in part in 2022. Any person contravening section 25(1) is, without prejudice to any other proceedings, punishable:
| Conviction | Before 2022 | Since 10 May 2022 |
|---|---|---|
| First | Fine up to one thousand rupees | Imprisonment up to six months, or a fine of not less than one lakh rupees but up to five lakh rupees, or both |
| Any subsequent | Imprisonment up to six months, or fine up to five thousand rupees, or both | Imprisonment up to one year, or a fine of not less than two lakh rupees but up to ten lakh rupees, or with both |
The 2022 text introduces a minimum fine in section 25(2). Section 64 of the 2022 Act sets it out, and it is in force.
Section 25(3) is printed as omitted.
Section 25(4): the Central Government's declaration. If the Central Government is satisfied that a diploma, certificate or designation granted by someone other than the Institute purports to be a qualification in cost accountancy but, in its opinion, falls short of the standard prescribed for cost accountants and does not in fact indicate a qualification similar to that of a member, it may, by notification in the Official Gazette and subject to conditions it thinks fit, declare that section 25 shall not apply to that diploma, certificate or designation. The effect is that such a qualification can be awarded without breaching section 25.
The link with section 15B. Universities and affiliated bodies may teach the Institute's subjects, but their awards and names must not resemble the Institute's; see our article on sections 15 to 15B.
Two short examples
Example 1. Rajiv Kohli, who has never been a member of the Institute, prints visiting cards saying "Cost Accountant" and offers costing certificates. He falls within section 24(i)(b). On a first conviction the fine may extend to one lakh rupees. If convicted again, he faces imprisonment up to six months or a fine up to five lakh rupees, or both. The prosecution has to be on a complaint by or under the order of the Council or the Central Government.
Example 2. An unregistered training firm launches a "Diploma in Cost Accountancy" and a logo that is almost identical to the Institute's. Both the look-alike logo (limb (i)) and the diploma (limb (ii)) are covered by section 25(1). On a first conviction the person is punishable under the 2022 text with imprisonment up to six months or a fine of not less than one lakh rupees but up to five lakh rupees, or both.
An organisation facing a misuse of a professional title or an Institute-style name, or a person who has received an allegation of misuse, can consider legal notice drafting support to send or answer a notice properly.
The same rule for chartered accountants
See Section 23 of the Chartered Accountants Act, 1949 and Sections 24 and 24A. The designation and Institute here are those of the cost accountants.
Need help with misuse of a title or name?
If someone is using the cost accountant title or the Institute's name without entitlement, or you have received an allegation of misuse, our legal notice drafting team can help you prepare or answer the notice.
Key takeaways
- Regional Councils only advise and assist the Council; their constitution and functions are prescribed.
- Section 24 punishes false claims of membership, use of the title by non-members and practising without a certificate.
- Since 2022, fines under section 24 are one lakh and five lakh rupees.
- Section 25 now carries imprisonment and minimum fines for misusing the Institute's name or seal or awarding look-alike degrees.
- Prosecution needs a complaint by or under the order of the Council or the Central Government.
Read next
- Sections 26 and 27: companies and unqualified persons signing documents
- Sections 28 and 29: offences by companies and sanction to prosecute
- Sections 6 to 8: certificate of practice and designation
Disclaimer: Based on the Cost and Works Accountants Act, 1959 (now the Cost Accountants Act, 1959) as printed by the Institute of Cost Accountants of India (as amended in 2011), read with the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022 to the extent brought into force by S.O. 2184(E) dated 10 May 2022, as consulted on 3 October 2026. Regulations, rules, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.