1o things you must know for availing exemption in ca exams.

Ketan (STUDENT) (1869 Points)

15 January 2014  

Q1. What is Exemption in ICAI exams?

If you score 60 % or more in any paper in your IPCC or Finals Exam then you have scored an exemption in that particular paper.

Q2. Why Exemption thing is there in ICAI Exams?

·         Remember your school days, when you used to score good marks & you used to get some gift for great result from your parents & teachers. So, here also the rule is same. You score good marks & you get exemption.

·         Exemption’s oxford meaning: “releasing from an obligation”.

·         Exemption in CA exams simply means “you are free from the obligation of re-appearing the same exam in your subsequent exams in case you fail in any other subjects & have to give the exams again.”

·         Since CA –Exams are one of the toughest exams in the country, so to recognize the bright students who perform really well in the exams; ICAI came with the concept of awarding “Exemption”.

Q3. What are the benefits of claiming Exemption? Exemption ka Jaadu!!!

If you have scored exemption in any paper, then even if you are failing in other subjects of the group, you will not have to give the exam of the subject (in which you scored exemption).

Keynote: Even if you score 0 marks in other subjects of the group, in which you have failed, exemption will be definitely available to you for the papers in which you scored 60 or more marks.

Q4. What does Regulation 38A of Chartered Accountants Regulations, 1988 mean by way of Notification No. 1-CA(7)/51/2000 dated 14th August 2001?

It says:

·         If a Candidate who was Present in all the Papers of a Group, fails in one or more papers comprised in a group but,

·         Secures a Minimum of 60 Marks in any paper or papers of that Group,

·         Shall appear in the next attempt in only those Papers in which he secured less than 60 Marks,

·         And shall be declared passed if he obtains minimum 40% in each subject and 50% in aggregade including the paper(s), in which the candidate had secured more than 60 marks in the earlier examination.

·         The Exemption would be specifically mentioned for each subject and shall be valid only for the next 3 following attempts.

Q5. What is the criterion to claim exemption?

1.     You must be present in all the papers of the group that you are appearing for.

2.     You must score minimum 60 marks in a particular paper to claim exemption.

3.     The exemption is valid for next 3 immediate succeeding attempts to be appeared by you.

4.     In your next attempt you cannot claim further exemption in remaining papers of the group until & unless you have fully exhausted the exemption already granted to you in your previous attempt.

Now, Let’s take an eg.: Honey scored following marks in 1st Attempt:

1.     Accounts- 65 Marks

2.     Law- 35 Marks

3.     Cost & FM- 30 Marks

4.     Taxation- 40 Marks

Aggregate- <50 %, Hence failed.

But since Honey scored 65 marks in accounts, he can avail the exemption. Now he will not have to give accounts exam again in his next attempt.

·         During 2nd Attempt: Case 1

  • During 2nd Attempt: Case 2
  • During 3rd Attempt

Honey’s Marks: II. Law- 52 Marks III. Cost & FM- 43 Marks IV. Taxation- 40 Marks

Total- 135 Marks

Aggregate- 135 Marks (this attempt) + 65 Marks (Accounts- previous attempt) = 50%

Result- Pass.

Honey’s marks: II. Law- 30 Marks III. Cost & FM- 65 Marks IV. Taxation- 69 Marks

Total= 164 Aggregate- 164 + 65(accounts previous attempt) = 57.25% (>50%)

Result- Fail (As he is fail in Law). Now, Honey is already availing exemption (accounts- 65 Marks), exemption on account of getting 60% or more marks in any paper will not be available. Therefore, honey can’t claim exemption for Taxation in his 2nd attempt.

Honey’s marks: II. Law- 45 Marks III. Cost & FM- 70 Marks IV. Taxation- 39 marks

Total- 154

Aggregate- 54.75% {154 + 65 (accounts)= 219}

Result- Fail (since he’s fail in Taxation)

Honey was fail in the 4th Attempt also.

Now, in the 5th Attempt, Honey cannot claim the Exemption granted to him for Accounts (65 Marks) since 3 attempts have been lapsed.

Q6. What is procedure to avail exemption?

There is no procedure as such to avail the exemption.

Exemption is automatically granted to CA PCC/CA IPCC/ CA Final students by ICAI and it will be mentioned on the mark-sheet awarded to the students.

Exemption is granted by way of # symbol against the marks of the subject in which scored 60 or more.

In your statement of marks, you will find the alphabet “E” marked against the marks of already exempt papers, which are carried forward from an earlier examination, provided the exemption is still valid.

Q7. What is the Most Popular Query related to Exemption among students?

I scored exemption in Accounts of 1st group in my 1st attempt & in the next attempt I scored more than 60 in Taxation of the same group. Can I avail exemption the exemption for Taxation?

A. No. An exemption is allotted only if you appear for all papers in a group. As you didn’t appear for all papers in the 2nd Attempt, the exemption scored in the succeeding attempts (in Taxation) will not be available to you.

Q8. What is the Surrender of Exemption?

A. If you don’t wish to avail the exemption you scored then it stands surrendered. You will have to appear for the exam again in the next attempt for the subject in which you scored 60 or more in the previous attempt.

Q9. Why students surrender Exemption?

If you claim exemption, then you don’t have to appear in all the papers of your next attempt. ICAI allots Ranks to the top 50 students. And to obtain the Rank, you have to appear for all the papers of both the groups. Now, if you claim exemption then you won’t be appearing for all papers & hence you will not be eligible for the Rank.

This is the only reason some students surrender exemptions.

Q10. What is the procedure for Surrender of Exemption?

1.     Write a letter to the Additional Secretary (Examinations) informing him of your decision to surrender the Exemption and you should also enclose a copy of the Relevant Mark Sheet.

2.     On receiving the letter, ICAI will send a Proforma to you which is to be executed by you on a Non-Judicial Stamp Paper.

3.     Please note that the surrender of Exemption will become effective only after furnishing the requisite affidavit and after the issue of confirmation letter by the Institute.