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The following are clauses mentioned in part I of schedule I:

Schedule I:


Part I:


Professional misconduct in relation to Chartered accountants in practice:


Clause 1:

“Allows any person to practice in his name as a Chartered accountant in practice and is in partnership with or employed by him

It is to protect the public against unqualified accountants practicing as qualified CA’s.



Clause 2:

“Pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any person other than a member   of the Institute or a partner or a retired partner or the legal representative of a deceased partner, or a member of any other professional body or with such other persons having such qualification as may be prescribed, for the purpose of rendering such professional services to time in or outside India;”


1.    Widow can continue to receive a share of firm if partnership agreement contains a provision. However, the widow of a deceased member, whose professional work is mainly income tax representation, cannot receive a monthly lump sum payment for a period of 5 years or a specified percentage of income.

2.    Now onwards, on death of sole proprietor, the name of the firm will be kept in abeyance by the institute for one year so that to enable the widow of deceased to sell g/w of the firm.

3.    For deaths of members


i) On or after 30th Aug, 1998: a. Normal Cases

                              Name will be kept in abeyance 

                              up to one year from death

                            b. Disputed Cases

                                 Till one year from the date of

                                 settlement of dispute

                                 provided information as to dispute is

                                 received by ICAI

                                 within 1 year of death.

ii) Before 29th Aug, 1998:

 If the firm name is still available with ICAI, up to 29th Aug, 1999.




“Partner” includes a person residing outside India with whom a chartered accountant in practice has entered into partnership which is not in contravention of item (4) of this Part.


Clause 3:

“Accepts / agrees to accept any part of the profits of the professional work of a lawyer, auctioneers, broker or other agent who is not a member of institute.”


Clause 4 :

“Enters into partnership with any person other than C.A. in practice or a person resident without India who but for his residence would be entitled to be registered or whose qualification are recognized by Govt./ Council / provided C.A. shares in fee / profits of business of partnership both within and without India.” 

Clause 5:

“Secures, either through the services of a person who is not qualified to be his partner or by means which are not open to a C.A., any professional business.”


Means “A man must stand erect, and not be kept erect by others”

A c.a must seek work not through agency, but by the confidence he is able to inspire by his reputation. This type of canvassing are regarded as unethical and are prohibited.


Clause 6:

“Solicits clients or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means.”


1. Adv. And note in press: As a general rule he can’t advertise

2. Empanelment for allotment of audit/professional Work

However as per new notification, a C.A. can respond to tender etc. if required by Govt. agency etc. In this case, he can pay reasonable price for tender document


3. Publication in telephone / other directories

   It should not impress like publicity. It should be in normal letters and in logical order.


4. Responding to Tenders, Adv. / Circulars


5. Issuing Hand Bills:

To persons other than clients such as changes in tax.

6. Publication of Books and Articles:

No indication as to association with any firm of C.A.

7. Issue of greeting cards or invitation:

Designation and name of the firm may be printed on invitation provided sent to clients relatives and close friends.

8. Roving inquiries:

No sending of such inquiries to prospective clients.

9. Seeking work from professional colleagues:

Not permissible except in journal.

10. Public Interview:

No publicity, details about firm / professional attainments.

11. Web-site:

                         i.      CA / CA firm free to create own website (no std. Format, no restriction on color).

                       ii.      Website runs on ‘pull’ mode not on ‘push’.

                     iii.      Can mention Website Address on professional. Stationery.

                    iv.      Specific.’ pull’ request for :

a. Nature of services rendered.

b.    Area of Exp. of partners.

c.     Area of exp. of employees.

d.    No. of articled clerks.

e.    Nature of assignment handled.

Can’t give:

(i)         Name of clients and fee charged;  

(ii)       No logo;  

(iii)     No photograph(however passport size photograph of member can be given)

(iv)    No Adv.  

(v)      Ref. About website (other than that of ICAI and Govt. related.).

         i. Articles etc. of professional interest can be given.

                         i.      Bulletin Boards can be provided.

                       ii.      Chat room between client and CA is permitted.

                     iii.      Listing on suitable search engine is permitted if restricted to CA, Indian CPA etc.

                    iv.      Details shouldn’t solicit client or adv.

                      v.      Secrecy of matters of clients through website.

                    vi.      If he is member of a professional body or chamber of commerce offering listing ® permitted.

                  vii.      Strict compliance with guidelines is required.

                viii.      Address of website can be diff. from name of the firm but should be as near as possible to such name of CA/CA firm).

                    ix.      Address of website ® intimation to ICAI along with annual membership form.

                      x.      Mention date up to which it is updated.

They can provide services through other websites also provided contact address of CA and professional achievement is not given.


Clause 7:

Advertises his professional attainment or services or uses any designation or expression other than Chartered Accountant on professional. documents, visiting cards, letter heads or sign boards unless it be a degree of an University established by law in India or recognized by the Central Government or a title indicating membership of ICAI or any other institute recognized by Central Govt./by Council. “

The following are some misconduct:

a.    He can’t use words like income-tax consultant, cost consultant or management consultant.

b.    Can’t use ‘Member of Parliament’, etc. in addition to that of Chartered Accountant.

c.     Use of logo, not permissible at all.

d.    Persons eligible otherwise, subject to permission may practice as advocates but can’t use designation “Chartered Accountant” and “Advocate” simultaneously.

e.    Photograph and brief particulars in magazine (No payment/No Adv.)

f.      Success in exams may be given without any undesirable publicity with respect to member/firm/clerk.

g.    Use of glow sign-board/light or large size board is not proper. He may have a name board of himself at residence but not of a firm.

Clause 8:

Accept a position as Auditor previously held by another chartered accountant or restricted state auditor without first communicating with him in writing.” 

Clause 9:

Accepts an appointment as auditor of a company without ascertaining from it whether requirement of section 225 (companies act), in respect of such appointment have been duly complied with.”

Clause 10:

Charges/offers to change accepts/offers to accept with respect to any professional employment, fee based on a % of profits or which are contingent upon findings or results of such employment, except in cases which are permitted.

Not contingent if fixed by court/public authority.

Exception (May by % of profits):

(i)   Receiver or liquidator (% of realization).

(ii) Auditor of Co-op. Society (% of paid up/working capital, gross/net income/profit.

(iii)   Valuer.

Clause 11:


      Engage in any Business (occupation other than profession of C.A. unless permitted by council so to engage.”

      However, he can always become director (not M.D.) in a company provided he/his partner is not interested in such co., as an auditor


General Permission

(i)   Employment under C.A. /C.A. firm.

(ii) Private tutorship.

(iii)           Authorship of Books/Articles.

(iv)          Holding Life Insurance Agency license (Renewal Commission.).

(v)Attending class and appearing in any exams.

(vi)          Holding public elective office (M.P., M.L.A.)

(vii)        Honorary office of charitable – educational institute.

(viii)      Notary public, Justice of peace, Special Executive Magistrate and like.

(ix)          Part time tutorship under coaching organization of institute.

(x)Valuation of paper, paper setter, head-examiner or moderator for any exam.

(xi)          Editorship of professional journal.

(xii)        Acting as Surveyor/Loss Assessor under Insurance Act.

(xiii)      Recovery consultant

(xiv)     Insurance brokerage.


“Specific Permission

(1)Full time/Part time employment in Business concerns provided he/his relative not having sub. Interest.

(2)Full time/Part time employment in non-business concern.

(3)Managing Director/Whole-time Director concern.

(4)Interest In family Business concern.

(5)Interest. In agriculture/allied activities with help of hired labour.

(6)Interest In any educational institute.

(7)Part time/Full time lectureship for courses other than C.A. exams.

(8)Part time/Full time tutorship under any educational institute other than coaching org. of institute.

(9)Editorship of journal other than professional one.

(10)          Any other Business/Occupation considering it to be necessary to take permission.

However, they may act as liquidator trustee, executor, etc., or may take an appointment made by Govt./Court/Legal Authority in professional. Capacity provided it is not a salary-cum-full-time basis.

If not designated as M.D. or W.T.D. but entrusted with whole/substantially the whole of management of affairs of company, deemed to be M.D.


IT IS FURTHER REOLVED that the general and specific permission granted by the Council is subject to the condition that

(i)        Any member engaged in any other business or occupation, in terms of general or specific permission granted as per Appendix NO. (9) shall not be entitled to perform any attest function except in the following cases:

(a)       Authorship of books and articles.

(b)       Holding of Life Assurance Agency License for the limited purpose of getting renewal commission.

(c)        Attending classes and appearing for any examination.

(d)       Holding of public elective offices such as M.P., MLA & MLC.

(e)       Honorary office-bearer ship of charitable, educational or other non-commercial organizations.

(f)         Acting as Notary Public, Justice of the Peace, Special Executive Magistrate and the like.

(g)       Part-time tutorship under the Coaching Organization of the Institute.

(h)       Valuation of papers, acting as paper-setter, head-examiner or a moderator for an examination.

(i)          Editorship of professional journals – (not in employment)

(j)         Acting as surveyor and Loss Assessor under the Insurance Act, 1938 (not in employment).

(k)       Acting as Recovery consultant in the Banking Sector (not in employment)

(l)          Any coaching assignment organized by the Institute, its Regional Councils and Branches of Regional Councils.

(m)    Engagement as Lecturer in an University, affiliated college, educational institution, coaching organization, private tutorship, provided the direct teaching hours developed to such activities taken together do not exceed 25 hours a week.

(n)       Engagement in any other business or occupation permitted by the Executive Committee from time to time.

(o)       Insurance brokerage.

(ii)         A member who is not entitled to perform attest function shall not be entitled to train articled clerks.


A C.A. in practice holds Law degree should not practice and should not use both designations, C.A and Advocate, simultaneously. Regulations 190A and 191 provide general permission for certain categories of occupation.

Clause 12:

      Allows a person not being a member of the institute or a member not his partner to sign on his or his firm behalf, any B/S, P&L A/c. report of financial statement”



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