The Institute of Chartered Accountants of India (ICAI) has issued detailed guidance notes for CA Intermediate candidates regarding the process of continuing exhausted exemptions by making them permanent for the May 2026 examination.
The notification provides clarity for students whose earlier exemptions are expiring after the January 2026 attempt and offers a one-time opportunity to convert them into Permanent Exemptions (PE).
Who Can Continue Exhausted Exemptions?
As per ICAI's guidance:
- Candidates who secured exemption in the January 2025 Intermediate examination
- Whose exemption remains valid up to the January 2026 CA exam
- And whose exemption gets exhausted upon declaration of January 2026 results
will be given the option to continue the exemption permanently before the May 2026 exam.
How to Apply for Permanent Exemption?
Eligible candidates must:
- Log in to their SSP (Self Service Portal) dashboard
- Exercise the option during the "Permanent Exemption Window (Intermediate & Final) - May 2026"
- Apply within the dates mentioned under the Important Dates section on ICAI's official website
ICAI has clearly stated that there will be no correction window and no late fee window once the option is submitted.
One-Time Opportunity - No Second Chance
ICAI has emphasised that candidates will get only ONE chance to make the exemption permanent.
If the candidate fails to opt for continuation during the specified window, the exemption will lapse permanently.
Key Rules CA Intermediate Students Must Note
1. Group-Based Condition
If a candidate holds exemption in two papers of the same group (for example, Paper 1 and Paper 2 of Group I), they must either:
- Make both exemptions permanent, OR
- Allow both to lapse
Partial selection is not permitted.
2. 50% Rule in Remaining Papers
After converting exemption into Permanent Exemption (PE), the candidate must secure at least 50% marks in each of the remaining papers of that group , as per Regulation 37D(9) for Intermediate.
3. Exempted Marks Capped at 50
If exemption is continued permanently:
- The exempted marks will be restricted to 50
- Any excess marks above 50 cannot be used to meet the 50% aggregate requirement of the same or another group.
4. No New Exemption in That Group
If a group already has a Permanent Exemption (PE), no fresh exemption will be granted in that group.
5. Option to Surrender Permanent Exemption
Candidates who opt for permanent exemption may later surrender it and reappear in the exempted paper(s), as permitted by ICAI.
Official Contact for Queries
For any clarification, Intermediate candidates may write to:
What This Means for CA Intermediate Aspirants
With the May 2026 attempt approaching, candidates must carefully assess whether converting an exhausted exemption into a Permanent Exemption aligns with their overall scoring strategy. Since exempted marks will be capped at 50 and no second opportunity will be provided, informed decision-making is critical.
Students are advised to regularly check the ICAI website for updates regarding the Permanent Exemption Window and ensure timely action within the specified dates.
Official copy of the notification is as follows
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