Section 26 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 26 says that only a member of the Institute may sign a document on behalf of a chartered accountant in practice or a firm of chartered accountants, in his or its professional capacity. A person who is not a member and signs anyway commits an offence punishable with a fine on first conviction and with imprisonment or a larger fine on repetition. This article follows the text 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).
No person other than a member of the Institute may sign any document on behalf of a chartered accountant in practice or a firm of such chartered accountants in his or its professional capacity. First conviction: a fine of not less than one lakh rupees and up to five lakh rupees. Second or subsequent conviction: imprisonment up to one year, or a fine of not less than two lakh rupees and up to ten lakh rupees, or both. The 2022 amounts are in force from 10 May 2022.
What the section protects
A report, certificate or statement signed for a practising chartered accountant tells the reader that a member of the Institute stands behind it. If a clerk or an assistant who is not a member signs in the firm's name, the reader is misled and the Institute's disciplinary reach does not cover the signatory. Section 26 closes that gap by making the signature itself an offence.
Practitioners with office staff, branches or delegated signing arrangements should check their routines against this section. Our compliance advisory team can review signing authority, document flows and engagement letters in a practice.
Section 26(1): the rule
The rule has four parts.
- Who is barred: any person other than a member of the Institute.
- What is barred: signing "any document", not only audit reports. The section is not limited to financial statements.
- On whose behalf: a chartered accountant in practice or a firm of such chartered accountants. The words were substituted in 1959 for "chartered accountant or a firm of chartered accountants".
- In what capacity: "in his or its professional capacity". A member signing a personal letter or a purchase order for the office stationery is not in that capacity.
The bar is drawn by membership. A member who signs for a practising firm is not "a person other than a member", so section 26(1) does not bar him by its words; the other provisions of the Act and the Schedules govern what such a member may do. Our article on when a member is deemed to be in practice explains who counts as being in practice.
Section 26(2): the punishment
A person who contravenes sub-section (1) shall, without prejudice to any other proceedings that may be taken against him, be punishable as follows.
| Conviction | Punishment |
|---|---|
| First | Fine of not less than one lakh rupees, up to five lakh rupees |
| Second or subsequent | Imprisonment up to one year, or fine of not less than two lakh rupees and up to ten lakh rupees, or both |
The 2006 Amendment Act substituted this sub-section with effect from 8 August 2006, and the 2022 Amendment Act raised the amounts from 10 May 2022. The first conviction carries a fine only and has a floor. Imprisonment comes in only on a second or subsequent conviction.
Who is punished: the signer, not the firm
Section 26(2) is aimed at the person who signs. The member who lets the unqualified person sign faces a different route: First Schedule, Part I, item (12) lists, as professional misconduct of a chartered accountant in practice, allowing a person who is not a member in practice, or a member who is not his partner, to sign on his behalf or on behalf of his firm any balance-sheet, profit and loss account, report or financial statements. Our article on First Schedule items (9) and (12) explains that item.
| Route | Aimed at | Nature |
|---|---|---|
| Section 26 | Person who signs when not a member | Offence, tried on a complaint |
| First Schedule, Part I, item (12) | Practising member who allows such signing | Professional misconduct, inquired into under Chapter V |
Item (12) has a wider net than section 26 in one respect: it also covers a member who is not a partner of the firm. Section 26 would not catch that member, because he is a member.
Prosecution
No person can be prosecuted under the Act except on a complaint made by, or under the order of, the Council or the Central Government (section 28). Our article on sections 27 and 28 covers it.
Signatures and UDIN
The Act does not mention the Unique Document Identification Number. For readers who deal with it, our guide on UDIN: what it is and how to generate it explains the system that sits on top of signing by members.
A worked example
Vishal Traders, an invented client, receives a net-worth certificate on the letterhead of a practising firm. The signature is that of Mohan, an office assistant who has not qualified as a chartered accountant. Mohan has signed a document on behalf of a firm of chartered accountants in its professional capacity, which section 26(1) bars. On first conviction he faces a fine of one to five lakh rupees. The partner who allowed it faces a possible inquiry under the First Schedule, item (12).
Commencement note
Section 26 is in force as printed, with the 2022 amounts from 10 May 2022. Later amendments and notifications should be checked.
Need help with signing authority in a practice?
If you run a firm with several offices, staff and article assistants, a written signing protocol can prevent a problem before it starts. Our compliance advisory team can help you draft one that fits section 26 and the related Schedule items.
Key takeaways
- Only a member of the Institute may sign for a chartered accountant in practice or a firm, in the professional capacity.
- First conviction: fine of one to five lakh rupees. Later: up to one year's imprisonment, or two to ten lakh rupees, or both.
- A practising member who lets a non-member sign faces First Schedule item (12) as misconduct.
- Prosecution needs a complaint by or under the order of the Council or the Central Government.
Read next
- Section 25: companies not to engage in accountancy
- Section 24: penalty for falsely claiming membership
- First Schedule items (9) and (12)
- What is UDIN: meaning, example and uses
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.