Professional Misconduct applicable for CA in Practice

In accordance with section 22 of the Chartered Accountants Act, 1949 the expression “professional or other misconduct” shall be deemed to include any act or omission provided in any of the Schedules. There are two schedules under the CA Act, 1949 viz. First Schedule and Second Schedule.

The First Schedule has four parts whereas the Second Schedule has only three parts. However, the act or omission mentioned in second schedule pertains to graver misconduct and higher punishment in compare to the first schedule.

If a CA in practice found guilty of professional misconduct mentioned in the Part I of First Schedule, the Board of Discipline shall after giving an opportunity of being heard may take any one or more of the following actions, namely:

(a) reprimand the member;

(b) remove the name of the member from the Register up to a period of 3 months;

(c) impose such fine as it may think fit, which may extend to ₹1,00,000.

Whereas, if a CA in practice found guilty of professional misconduct mentioned in the Part I of Second Schedule or both the First Schedule and the Second Schedule, the Disciplinary Committee shall after giving an opportunity of being heard may take any one or more of the following actions, namely:

(a) reprimand the member;

(b) remove the name of the member from the Register permanently or for such period, as it thinks fit;

(c) impose such fine as it may think fit, which may extend to ₹5,00,000.

Part I of both schedule deals with the Professional Misconduct in relation to Chartered Accountants in practice. Accordingly, there are total 22 clauses (12+10) which are specifically related to Professional misconduct applicable for CA in practice.