How to become Chartered Accountant In India
Would you like to find a job in the accounting sector? Well, India has a booming industry for accountants. In fact, there are more than 200,000 vacancies for chartered accountants in India.
This article will explore how to become one of them by giving you a step-by-step guide from the application process to passing your exams.
Chartered Accountants are recognized as
- Experts in financial reporting, audit, taxation, business and commercial knowledge, stratagic financial management, business mathematics, business economics, financial and enterprise risk management.
- A CA is at the forefront of accounting and auditing that keeps businesses running smoothly. They also help people manage time, money, and risk.
- The CAs in India are the accounting professionals who are authorized to provide audit, accountancy, tax advisory and management consultancy services.
- The CA are highly skilled professionals with expertise in strategic cost management, management accounting, direct tax laws, handling all their clients’ financial needs.
India has a well-established chartered accountancy profession with over 327000 members.
Why Should You Become a Chartered Accountant?
Reasons to become CA
- High in demand in organizations like corporates, financial institutions, etc.
- You can start personal auditing firm
- Handsome earning starting from ₹ 100000 – 2500000 LPA which may go upto one crore depending on experience
- One of the most respectable position
- Due to very tough exams very few people come into it, so there is very less competition.
- Can work for the government as well as the private sector. Also can open a personal startup.
Eligibility: 12th pass in any stream.
To become a Chartered Accountant in India, you’ll need to qualify for globally recognized Institute of Chartered Accountants of India (ICAI) membership.
For the journey to pursue you’ll need to pass three important exams:
- CA Foundation
- CA Intermediate
- CA Final.
Note– In addition, before CA intermediate you’ll need to undergo a practical on-the-job training known as an articleship.
Exams to become Chartered Accountant In India
Exam 1: Chatered Accountant foundation
It helps a student to gain a thorough understanding of various concepts and techniques related to finance, taxation, audit and management.
It helps them know about financial statements, cost accounting, auditing and taxation.
It also helps them understand the basics of business law, corporate governance and company ethics.
The Chartered Accountant Foundation course is to learn the basics of accounting by researching how financial accounts work on all types of accounts.
- Eligibility: 12th pass in any stream (Arts, Science and Commerce)
- Registration: You need to register with the Board of Studies (BoS). It is a part of the ICAI that gives theoretical education, practical and computer training.
- Fees: Rs 11300 for registration fees, examination fees, online form fee and journal for member and students.
- Registration process: Fill up basic details online at ICAI official website and get a registration number, user id, and password.
- Duration for preparation: 4 months after registration. After that, fill the CA Foundation exam form before the last date to get the CA Foundation admit card.
- Exams months: Exams are held twice in a year in the months of May and November, you need to register in the month of December for May exam and June for November exam respectively.
- Paper’s Pattern: There are four subject related papers for common proficiency test, 2 papers are subjective types and another 2 are objective type papers. Papers will be related to basic accounting and auditing principles of 100 marks each.
- Validity – Valid for 3 years
- Number of attempts allowed: You can attempt 6 times under your registration.
- Passing Marks – For the next intermediate level, you need to clear the CA foundation exams with at least 40% marks in each subject or 50% aggregate.
? Paper 1: Principle and Practice of Accounting
? Paper 2: Business Laws and Business Correspondence and Reporting
? Paper 3: Business Mathematics and Logical Reasoning & Statistics
? Paper 4: Business Economics and Business and Commercial Knowledge
Exam 2: CA intermediate
Chartered Accountant Intermediate in India is an intermediate level qualification program prepared for CA graduates who are on the verge of completing their CA Final Examination.
The program is designed to provide professional education and training required for success in a post-qualifying work environment.
The course is designed with special focus on the development of skills that will lead to new avenues of growth for participants.
Also Read: Courses After 12th Commerce In India
- Eligibility: Clear CA foundation exam or Direct entry after graduation and post-graduation
- For Direct entry route you need to have any of this: Commerce graduate or postgraduate (minimum 55% marks), Other graduates or postgraduates (minimum 60% marks), CS Executive exam pass, CMA Intermediate exam pass
- Exams months: Register in the month of March for November exam and September for May exam.
- Validity: The validity for registration is for 4 years. 8 attempts of exam are allowed during this period.
- Preparation Period: You will get a 9 months preparatory period after registration.
- Exam Form and Admit Card: Register for the Intermediate exam by filling CA Intermediate exam form online and download the Admit card.
- Total Fees – For single group it is ₹ 13,000 and for both group is ₹ 18,000. Direct Entry Route have to register for both groups.
? Group 1: 4 Chapters
Paper-1: Accounting (100 Marks)
Paper-2: Corporate Laws & Other Laws (100 Marks)
– Part I: Company Law (60 Marks)
– Part II: Other Laws (40 Marks)
Paper-3: Cost and Management Accounting (100 Marks)
Paper-4: Taxation (100 Marks)
– Section A: Income-tax Law (60 Marks)
– Section B: Indirect Taxes (40 Marks)
? Group 2: 4 Chapters
Paper-5: Advanced Accounting (100 Marks)
Paper-6: Auditing and Assurance (100 Marks)
Paper-7: Enterprise Information Systems & Strategic Management (100 Marks)
– Part I: Enterprise Information System(50 Marks)
– Part II: Strategic Management (50 Marks)
Paper-8: Financial Management and Economics for finance(100)
– Part I: Financial Management( 60 marks)
– Part II: Economics of Finance(40 marks)
Students of intermediate have to undergo ICITSS training for 4 weeks. The training can only be done after clearing one group of both groups, after the completion of training and clearing both the groups.
After the completion of training and clearing both groups, you are eligible for CA final level with step 3.
After intermediate level, we go to final level. The final level consists of both practical training and theoretical exams.
The registration fees for articleship fees is ₹2000
A CA articleship is a form of apprenticeship that provides hands-on training to new CA (chartered accountants) in the field.
Generally, it consists of a mixture of classroom and on-the-job experience, with students working alongside qualified professionals and learning from them.
The article period lasts for 3 years and there are no formal qualifications necessary to apply.
Register for Articleship after completing one single group of intermediate. Start the practical training after completing both groups of intermediate.
Articleship needs 3 years of mandatory training, during this period you will start receiving a stipend.
During the last 6 month of practical training, you can register for the CA Final exam by filling an application form online.
After completion of Articleship students can register for Assessment tests.
Eligibility: You can start this training after completing the Integrated Course on Information Technology (ICITSS) and passing one or both groups of the CA Intermediate Exam.
Registration: You need to fill Form 102 and 103.
- Form 102 deals with the formal agreement between the Principal and yourself.
- Form 103 deals with particulars including documentary evidence of compliance with certain regulations outlined by ICAI that deal with articleship training.
Exam 3: CA Final
- Eligibility: Complete Articleship for ca final
- Last Date: There is no last date for registering for the CA final course
- Exam months: Final exams are held in May and November.
- Validity: Validity of the registration is for 5 years.
- Fees – The total fees paid in CA final is Rs 32300 for both groups (22000+3300+7000) which includes registration fees, examination fees, and GMCS fees).
- Passing Marks: You need to acquire 40% marks in all subjects or 50% marks in aggregate.
- Result – Result is declared within one month
Paper-1: Financial Reporting
Paper-2: Strategic Financial Management
Paper-3: Advanced Auditing and Professional Ethics
Paper-4: Corporate and Economic Laws
Paper-5: Strategic Cost Management and Performance Evaluation
Paper-6A: Risk Management
Paper-6B: Financial Services and Capital Markets
Paper-6C: International Taxation
Paper-6D: Economic Laws
Paper-6E: Global Financial Reporting Standards
Paper-6F: Multidisciplinary Case Study
Paper-7: Direct Tax Laws and International Taxation
Paper-8: Indirect Tax Laws
The CA final exams level is the toughest level. Best way to score good marks is; continuous practice of updated CA Final Mock test Papers, Practice manual, RTP, CA Final study material, previous year question paper, suggested answers.
Lastly you need to undergo 3 years of practical training which includes 4 weeks of Advanced Integrated Course on Information Technology and Soft Skills (AICITSS). Then you will get membership of the ICAI family.
Now, Finally You are a Chartered Accountant. ????
To become a CA you need to have a lot of commitment for a minimum of 4 years and involve a lot of hard work and practice. It is one of the toughest courses in the world, but it is possible to crack it down with persistence and consistency.
Becoming a chartered accountant requires a lot of hard work and effort. Preparation is key to getting the exams and achieving those coveted initials, so make sure your study habits are on point. Now I hope that your query of how to become a chartered accountant in India is solved.