Sections 39 and 40 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 39 lets the Council make regulations, subject to the Central Government's approval, on the many matters the Act leaves to "prescribed". Section 40 says every rule, regulation and notification must be laid before Parliament. This article groups the section 39(2) list by subject and shows what the 2022 Amendment Act changed. It does not state any regulation, number, fee or period. The Act was called the Cost and Works Accountants Act, 1959 until 10 May 2022.
The Council may make regulations by notification in the Gazette of India to carry out the objects of the Act, on a long list of matters in section 39(2). Regulations are subject to previous publication and the approval of the Central Government. Every rule, regulation and notification must be laid before Parliament for thirty days, and Parliament may modify or annul it, without affecting what was done earlier. The 2022 Act omitted clauses (h) and (j), widened clause (p) to firms, and replaced clause (s) with clauses (s) to (sk).
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. Section 71 of that Act, which amends section 39(2), is in force. Later amendments and notifications should be checked. The regulations and rules themselves are not set out here; where the Act says "prescribed" or "specified", the detail is in them.
Section 39(1): the general power
The Council may, by notification in the Gazette of India, make regulations for the purpose of carrying out the objects of the Act. (Words requiring a copy of the regulations to be sent to each member were omitted in 2006.) "Prescribed" in the Act means prescribed by regulations made under it.
Section 39(2): the matters, grouped by subject
Without prejudice to the general power, the regulations may provide for the following. The clause letters are those of section 39(2), and the 2022 changes are marked.
Entry, examinations and qualifications
| Clause | Matter |
|---|---|
| (a) | The standard and conduct of examinations |
| (b) | Qualifications for entry of a name in the Register of members (words changed in 2022) |
| (c) | The qualification required for section 5(4) (fellows) |
| (d) | Conditions under which an examination or training may be treated as equivalent |
| (e) | Conditions under which a foreign qualification may be recognised |
| (f) | The manner and conditions of applications for entry in the Register of members (words changed in 2022) |
| (v) | The registration and training of students and the fees for them |
Fees and the Register
| Clause | Matter |
|---|---|
| (g) | Fees payable for membership and the annual fees payable by associates and fellows for their certificates |
| (i) | Particulars to be entered in the Register of members (words changed in 2022) |
| (p) | The manner in which the annual list of members and firms registered with the Institute is published (2022 wording) |
The Council, its officers and committees
| Clause | Matter |
|---|---|
| (n) | Management of the Council's property and the maintenance and audit of its accounts |
| (o) | Summoning and holding Council and committee meetings, times, places, procedure and quorum |
| (q) | Powers, duties and functions of the President and Vice-President |
| (r) | Functions of the Standing and other committees and the conditions of discharge |
| (u) | Terms and conditions of service of persons who became employees of the Institute under section 32 |
The profession and the Institute's activities
| Clause | Matter |
|---|---|
| (k) | The regulation and maintenance of the status and standard of professional qualifications of members |
| (l) | The carrying out of research in accountancy |
| (m) | The maintenance of libraries and publication of books and periodicals |
| (w) | Any other matter required or permitted to be prescribed under the Act |
Omitted in 2022
- Clause (h): the manner in which elections to the Regional Councils may be held.
- Clause (j): the functions of Regional Councils.
Their subject is now covered by clause (sk), below. Clause (t) (exercise of disciplinary powers) had already been omitted in 2006.
Clauses (s) to (sk), substituted in 2022
The old clause (s) covered the "terms of office, and the powers, duties and functions of the Secretary and other employees of the Council". Section 71(iv) of the 2022 Act replaced it with a longer list:
| Clause | Matter |
|---|---|
| (s) | Circumstances for cancelling certificates of practice under section 6(3) |
| (sa) | Guidelines for granting or refusing certificates of practice under section 15(2)(e) |
| (sb) | The manner of appointment, powers, duties, functions, salaries, fees, allowances and other terms of the Secretary and other officers and employees under section 16(2)(c) |
| (sc) | The manner of preparing the annual financial statement and the annual accounts under section 18 |
| (sd) | The manner of maintaining the Register of members under section 19(1) |
| (se) | The manner of applying for registration of a firm and the terms of registration under section 20A |
| (sf) | Maintenance of the Register of firms, its particulars (including pending complaints and penalties) and the publication of the annual list under section 20B |
| (sg) | The manner of making available the status of complaints and orders under section 21(9) |
| (sh) | The panel of persons and the allowances of Presiding Officers and members of Boards of Discipline under section 21A |
| (si) | The same for Disciplinary Committees under section 21B |
| (sj) | Salaries, allowances and conditions of service of the Authority's officers and staff under section 22D(2) |
| (sk) | The manner of constituting Regional Councils under section 23(2) and their functions |
The flag. Clauses (se) to (si), and the 2022 words in (p) on firms, are in force, but they refer to sections 20A, 20B, 21, 21A and 21B as enacted in 2022, which are not in force as per S.O. 2184(E). They are heads of power waiting for provisions to be brought into force. A later commencement notification should be checked. See our articles on sections 20A to 20D and section 21.
Section 39(3) and (4): approval and first regulations
Section 39(3). All regulations made by the Council are subject to the condition of previous publication and to the approval of the Central Government. A regulation is therefore not final merely because the Council has decided it.
Section 39(4). Notwithstanding sub-sections (1) and (2), the Central Government may frame the first regulations for the purposes in the section. They are deemed to have been made by the Council and stay in force until the Council amends, alters or revokes them. This was a start-up provision at the time of the Act.
Section 40: laying before Parliament
Every rule and regulation made and every notification issued under the Act shall be laid, as soon as may be after it is made or issued, before each House of Parliament while it is in session, for a total period of thirty days, which may be comprised in one session or two or more successive sessions.
If, before the expiry of the session immediately following (or the successive sessions), both Houses agree in making any modification, or both Houses agree that the rule, regulation or notification should not be made or issued, it shall afterwards have effect only in the modified form or be of no effect, as the case may be. Any such modification or annulment is without prejudice to the validity of anything previously done under it.
Section 40 covers rules (made by the Central Government), regulations (made by the Council) and notifications. It replaced, in 2006, an earlier sub-section (5) of section 39 that dealt only with regulations.
A short example
The Council frames a regulation on the standard of an examination under section 39(2)(a). It publishes the draft, and the Central Government approves it under section 39(3). The Council notifies it in the Gazette of India and lays it before Parliament under section 40. If both Houses agree to modify it, it has effect in the modified form from then on; what was done before remains valid.
A professional who needs to know which regulation governs a certificate, a fee or a registration, or an organisation that wants to follow regulations as they change, can use legal consultation support.
The same rule for chartered accountants
See Section 30 of the Chartered Accountants Act, 1949 and Sections 30A to 30C on Central Government control. The list of matters differs, since each Act has its own subjects.
Need help finding the right regulation?
If you are checking which regulation or rule governs a fee, a certificate, a form or a procedure, a short legal consultation can point you to the head of power in section 39 and the places where the detail should be verified.
Key takeaways
- The Council makes regulations by Gazette notification, subject to previous publication and Central Government approval.
- Section 39(2) lists the matters; the 2022 Act omitted (h) and (j), widened (p) to firms and replaced (s) with (s) to (sk).
- Clauses (se) to (si) serve sections not yet in force.
- Every rule, regulation and notification is laid before Parliament for thirty days.
- Parliament's modification or annulment does not undo what was validly done earlier.
Read next
- Sections 37, 38 and 38A: branch offices, reciprocity and rules
- Sections 33 to 36A: Coordination Committee and directions
- Sections 15 to 15B: functions of the Council and the Institute
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.