Sections 4 and 5 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 4 lists the classes of persons entitled to have their names entered in the Register of members, and section 5 divides members into associates and fellows and gives each the right to use the letters ACMA or FCMA. The Act was called the Cost and Works Accountants Act, 1959 until 10 May 2022.
Five classes of persons may enter the Register of members: former associates and fellows of the dissolved company, persons who pass the prescribed examination and training, persons already in practice at commencement, persons with equivalent qualifications from outside India, and persons then studying for foreign examinations. Members are associates (ACMA) or fellows (FCMA). An associate becomes a fellow after five continuous years in practice or as an associate, with the stated qualifications. Since 2022 the fee ceilings and provisos are omitted, so the Council fixes the fee by notification.
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 42 and 43 of that Act, which amend sections 4 and 5, are in force. Later amendments and notifications should be checked.
What changed in 2022
Section 42 and section 43 of Act 12 of 2022 made these changes, all in force from 10 May 2022:
| Section | Change |
|---|---|
| 4 | "Register" becomes "Register of members" wherever it occurs; "without India" becomes "outside India" in clauses (iv) and (v) of sub-section (1); in sub-section (3) the words "which shall not exceed rupees three thousand" and the proviso (which allowed up to rupees six thousand with Central Government approval) are omitted |
| 5 | "Register" becomes "Register of members"; in sub-section (4) the words "which shall not exceed rupees five thousand," and the proviso (which allowed up to rupees ten thousand with approval) are omitted |
Section 4: entry of names in the Register
Section 4(1): the five classes
A person in any of these classes is entitled to have his name entered in the Register of members:
- Clause (i): a person who was an associate or fellow of the dissolved company (not an honorary associate or fellow) immediately before the Act began, except a person who is not a permanent resident of India and was not then practising as a cost accountant in India.
- Clause (ii): a person who has passed such examination and completed such training as may be prescribed for members of the Institute.
- Clause (iii): a person who, at the commencement of the Act, was engaged in the practice of cost accountancy in India and fulfils such conditions as the Central Government or the Council may specify.
- Clause (iv): a person who has passed such other examination and completed such other training outside India as the Central Government or the Council recognises as equivalent to the examination and training prescribed for members. If the person is not permanently residing in India, the Central Government or the Council may impose such further conditions as it deems fit.
- Clause (v): a person domiciled in India who, at commencement, was studying for a foreign examination while undergoing training (within or outside India), or had passed such an examination and was undergoing training. The foreign examination and training must be recognised, and the person must pass the examination and complete the training within five years from the commencement of the Act.
Clauses (i), (iii) and (v) are transitional and mostly of historical interest today. For a student or a newly qualified member the working route is clause (ii): the prescribed examination and training, with details in the regulations. For a person qualified abroad it is clause (iv).
Section 4(2) to (4)
- Sub-section (2): persons in clause (i) are entered without paying any entrance fee.
- Sub-section (3), as amended: persons in clauses (ii), (iii), (iv) and (v) are entered on application made and granted in the prescribed manner and on payment of such fees as may be determined, by notification, by the Council. The earlier text in force before 2022 capped this fee at rupees three thousand, with a proviso allowing more, up to rupees six thousand, with prior approval of the Central Government. Both are omitted. The Act now sets no figure; the fee is whatever the Council notifies. The notified amount is not in this series.
- Sub-section (4): the Central Government was to take the steps necessary to get the names of all clause (i) persons entered at commencement. This is a spent provision.
Section 5: fellows and associates
Section 5(1) to (3)
Members are divided into two classes: associates and fellows.
- Sub-section (2): a person (other than one covered by sub-section (3)) whose name is entered in the Register is deemed to be an associate member, and as long as the name stays on the Register may use the letters ACMA to show he is an associate of the Institute of Cost Accountants of India.
- Sub-section (3): a person who was a fellow of the dissolved company and is entitled to entry under section 4(1)(i) is entered as a fellow.
Section 5(4): becoming a fellow
This is the provision most members use. An associate becomes entitled to be entered as a fellow in either of two ways:
- he has been in continuous practice in India for at least five years, whether before or after the commencement of the Act, or partly before and partly after; or
- he has been an associate for a continuous period of not less than five years and has such qualifications as the Council prescribes to ensure experience equivalent to five years of continuous practice as a cost accountant.
In either case he must apply in the prescribed manner and pay the fees determined by the Council by notification. As with section 4(3), the old rupees five thousand ceiling and the proviso allowing up to rupees ten thousand are omitted from 10 May 2022.
Explanation I: a person is deemed to have practised in India for any period for which he held a certificate of practice under section 6, even if he did not actually practise in that period.
Explanation II: in counting the continuous period as an associate, any continuous period as an associate of the dissolved company immediately before becoming an associate of the Institute is included.
Section 5(5)
A person whose name is entered as a fellow may use the letters FCMA after his name while it remains so entered.
A short example
Kavita Nair qualified as an associate in 2019 and has held a certificate of practice every year since. In 2025 she meets the five-year condition through practice. Because Explanation I treats years of holding a certificate as years of practice, it does not matter if in one year she had few clients. She applies in the prescribed manner, pays whatever fee the Council has notified, and on her application being granted is entered as a fellow and may use FCMA.
Whether she satisfies the condition on a given date depends on the dates of her certificates, which is a matter for the Institute's records and the regulations. An entrant who is unsure of the route that applies should take legal consultation before applying.
Points to watch
- Entitlement is not automatic entry. Section 4(1) says the person is entitled to have his name entered; for classes (ii) to (v) the entry follows an application granted in the prescribed manner and payment of the fee.
- Disabilities override. Section 4 begins the chain, but section 8 says that notwithstanding section 4 a person with certain disabilities cannot be on the Register. See sections 6 to 8.
- Keeping the name on the Register. The right to use ACMA or FCMA lasts only as long as the name remains on the Register; removal is covered by sections 19 and 20.
The same rule for chartered accountants
The chartered accountants' equivalents are Section 4 of the Chartered Accountants Act, 1949 and Section 5. The qualifying period, designatory letters and the dissolved company differ.
Need help with membership questions?
If you are applying for entry, a fellowship or a change of status, or you advise someone who is, a short legal consultation can help you match the facts to section 4 or 5 and flag what the regulations must still be checked for.
Key takeaways
- Section 4(1) names five classes entitled to have their names entered in the Register of members.
- Clause (ii) is the working route: the prescribed examination and training.
- Since 10 May 2022 the fee ceilings and provisos in sections 4(3) and 5(4) are omitted.
- Associates use ACMA, fellows use FCMA, only while the name stays on the Register.
- A fellow needs five years of continuous practice or five years as an associate with the prescribed experience.
Read next
- Sections 6 to 8: certificate of practice, designation and disabilities
- Sections 19 and 20: Register of members and removal of names
- Section 2: definitions and when a cost accountant is in practice
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.