The Institute of Chartered Accountants of India (ICAI) has issued detailed guidelines regarding the continuation of exhausted exemptions by converting them into Permanent Exemptions (PE) for candidates appearing in the September and November 2026 CA Intermediate and CA Final examinations.
The move provides eligible candidates with a one-time opportunity to retain exemptions that would otherwise lapse after the prescribed validity period. The facility is expected to benefit students who had secured exemptions in the May 2025 examination and whose exemption validity extends up to the May 2026 examination cycle.
Who Can Apply for Permanent Exemption?
According to ICAI, candidates who obtained an exemption in the May 2025 examination and whose exemption becomes exhausted after the declaration of the May 2026 results will be eligible to apply for making the exemption permanent.
The exhausted exemption details will be displayed in candidates' Self Service Portal (SSP) dashboards during the designated "Permanent Exemption Window" before the September/November 2026 examinations.
Candidates interested in availing the facility must submit their request online through the SSP portal within the specified timeline announced by ICAI.
Only One Opportunity Available
ICAI has clarified that candidates will get only one chance to convert an exhausted exemption into a permanent exemption.
If a candidate fails to exercise the option during the specified window, the exemption will lapse permanently and cannot be restored later. No correction window or late-fee window will be provided after submission.
Important Rule for Multiple Exemptions in the Same Group
A significant condition applies to candidates holding exemptions in more than one paper within the same group.
For example, if a candidate has exemptions in both Paper 1 and Paper 2 of Group I, they must either:
- Make both exemptions permanent, or
- Allow both exemptions to lapse.
Partial continuation is not permitted. Candidates cannot choose to retain one exemption while surrendering the other within the same group.
Impact on Passing Requirements
ICAI has emphasized that candidates opting for permanent exemption will need to secure at least 50% marks in each of the remaining papers of the concerned group in order to pass that group.
Additionally, if a Permanent Exemption exists in a group, no fresh exemption can be earned in that group in future examination attempts.
Exempted Marks Restricted to 50
Another important clarification relates to the marks carried forward under permanent exemption.
Where a candidate chooses to continue an exhausted exemption, the marks for the exempted paper will be restricted to 50, irrespective of the actual marks originally secured. Any marks above 50 in the exempted paper will not be considered while calculating the aggregate requirement of 50% for the same group or any other group.
Option to Surrender Exemption Remains Available
ICAI has also provided flexibility to candidates by allowing them to surrender the exemption and reappear in the exempted paper if they wish to improve their overall performance or avoid the conditions attached to permanent exemptions.
What CA Students Should Do Now
Eligible CA Intermediate candidates should regularly monitor the SSP portal and the examination announcements section of ICAI for the opening of the Permanent Exemption Window. Since ICAI has made it clear that only one opportunity will be available, students are advised to carefully evaluate the implications of opting for permanent exemption before making their decision.
The latest clarification provides much-needed certainty for students whose exemptions are approaching expiry and helps them plan their examination strategy for the September and November 2026 examination cycles more effectively.
Click here to view/download the official copy of the notification
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