Section 6 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 6 says that no member of the Institute is entitled to practise, whether in India or elsewhere, unless he has obtained a certificate of practice from the Council. The member pays an annual fee for the certificate, due on or before 1 April each year, and the Council may cancel the certificate in the circumstances prescribed in the regulations.
This article is as per the Act as printed in the ICAI edition of 2022 (amended up to the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022). Later amendments and notifications should be checked.
A member may practise only with a certificate of practice from the Council, in India or elsewhere. The member pays an annual fee as determined by the Council by notification, payable on or before 1 April each year. The Council may cancel the certificate under such circumstances as may be prescribed. The 2022 Amendment removed the statutory cap on the annual fee and the proviso allowing a higher fee, in force from 10 May 2022, so the Act now states no amount.
Section 6(1): no practice without a certificate
Section 6(1) is the central rule. "No member of the Institute shall be entitled to practise whether in India or elsewhere unless he has obtained from the Council a certificate of practice." Three points follow from the words:
- It applies to members, not to the public. Whether a person who is not a member may use the title or sign documents is dealt with in Chapter VII; see the articles on sections 24 and 24A and section 26.
- The reach is not limited to India. The words "whether in India or elsewhere" were inserted by the 1959 Amendment Act.
- Practice has its own definition. A member is deemed to be in practice under section 2(2) when, for remuneration received or to be received, he does any of the four kinds of service listed there. Section 6(1) puts a certificate of practice on that status. If you are about to move from employment into practice, a compliance advisory review before you start avoids an avoidable gap.
The proviso for 1949
The proviso to section 6(1) was inserted by a 1949 Ordinance. It said that the sub-section did not apply to a person who, immediately before the commencement of the Act, had been in practice as a registered accountant or a holder of a restricted certificate, until one month had elapsed from the date of the first meeting of the Council. It is a transitional provision for the Act's first weeks and has no present-day effect.
Section 6(2): the annual fee
Section 6(2) says every such member shall pay the annual fee for the certificate as may be determined, by notification, by the Council. The fee is payable on or before the 1st day of April each year. The edition points to Appendix No. (10) for the notification. That Appendix is a compilation by ICAI and is not part of the Act.
The sub-section was reshaped three times:
| Stage | Position |
|---|---|
| 1959 | fee as prescribed, differing according to whether the member was an associate or a fellow |
| 2006 | fee as prescribed, payable on or before 1 April each year |
| 2022 (in force from 10 May 2022) | fee as determined by notification of the Council; the cap and the proviso for a higher fee with Central Government approval were removed |
The effect of the 2022 change is that the Act no longer fixes the ceiling. The amount is whatever the Council's notification currently says, and the notification should be read at source. Neither a cap nor any figure is stated in the section.
The date also matters. The fee is "payable on or before the 1st day of April in each year". The date is stated as printed; the regulations may add procedure on how and when the certificate is issued or renewed, and they should be read for it.
Section 6(3): cancellation
Section 6(3) was inserted by the 2006 Amendment Act. It says the certificate of practice obtained under sub-section (1) may be cancelled by the Council under such circumstances as may be prescribed. Two consequences follow.
- The circumstances are not in the Act. "Prescribed" means prescribed by regulations made under the Act, so the grounds are in the regulations. Section 30, which empowers the Council to make regulations, is explained in the article on section 30.
- The power belongs to the Council. Cancellation is an administrative step taken by the Council, which is distinct from the disciplinary orders passed under Chapter V by the Board of Discipline or the Disciplinary Committee.
Where section 6 meets the rest of the Act
- Practice without a certificate puts a member outside the words "entitled to practise". The Act's disciplinary Schedules, explained in later articles, set out what amounts to professional or other misconduct.
- Branch offices of a member or firm in practice are governed by section 27, explained in its own article.
- Firm registration under Chapter IVA is enacted but not yet in force as per the edition and S.O. 2184(E) dated 10 May 2022; it does not change the certificate-of-practice rule for individual members today. A later notification should be checked.
A worked example
Karan, a fellow, retires from his employer and starts auditing small businesses for fees. He is in practice under section 2(2), so under section 6(1) he must obtain a certificate of practice from the Council before he starts. He then pays the annual fee, on or before 1 April each year, at the amount the Council has notified. If he stops practising and takes up employment again, the position about renewal and cancellation turns on the regulations, because section 6(3) leaves the circumstances of cancellation to them.
Need help with practice and certificate questions?
Setting up a practice, changing status from employment to practice or checking that a firm's partners all hold valid certificates are points where small gaps cause large problems. Our compliance advisory team can check the position against the Act and the current regulations.
Key takeaways
- No member is entitled to practise, in India or elsewhere, without a certificate of practice from the Council.
- The annual fee is determined by the Council by notification and is payable on or before 1 April each year.
- The 2022 Amendment removed the statutory cap and the higher-fee proviso, in force from 10 May 2022; the Act states no figure.
- The Council may cancel the certificate under circumstances prescribed in the regulations.
- The proviso to section 6(1) was a transitional rule for 1949.
- Section 2(2) decides whether a member is in practice.
Read next
- Section 2(2) of the Chartered Accountants Act, 1949: when a member is deemed to be in practice
- Section 30 of the Chartered Accountants Act, 1949: the Council's power to make regulations
- Sections 19 and 20 of the Chartered Accountants Act, 1949: the Register and removal of names
- Sections 6 to 8 of the Cost Accountants Act, 1959: certificate of practice, designation and disabilities
Disclaimer: Based on the Chartered Accountants Act, 1949 as printed in the ICAI edition of 2022 (amended up to Act 12 of 2022), read with S.O. 2184(E) dated 10 May 2022, which brought only part of the 2022 amendments into force, as consulted on 3 October 2026. Regulations, rules, Council guidelines, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.