ICAI Exemption Criteria for May 2026 New Course: Eligibility & Rules

The Institute of Chartered Accountants of India (ICAI) recently introduced a New Scheme of Education and Training, aimed at modernizing the CA curriculum, aligning it with current professional requirements, and giving students flexibility and clarity in their exam journey. Under this updated structure, the approach to exemptions — including paper-wise credits and permanent exemptions — has been revised to benefit students transitioning to or appearing under the new course.

Under the May 2026 New Course, ICAI has maintained provisions that recognize high scores from earlier attempts, allowing eligible candidates to claim exemptions. These exemptions help reduce exam load and strategically manage preparation across the CA Intermediate and CA Final levels. Understanding these criteria is critical to planning your appearance, especially if you’ve already secured high marks in earlier attempts or are transitioning from the old course structure.

ICAI Exemption Criteria – Highlights Table

What is an exemption in the ICAI New Course?

Exemption in ICAI terms means a candidate does not need to re-appear in a particular paper of the Intermediate or Final exams if they have secured exceptionally high marks in that paper earlier. Under the new scheme, this provision still plays a significant role, helping students reduce stress and focus on remaining subjects. 

Exemptions were historically a part of ICAI exams, but the New Scheme of Education and Training has clarified how exemptions work, how long they are valid, and how candidates can make them permanent for long-term benefit. This policy applies to both CA Intermediate and CA Final students appearing in May 2026 and thereafter. 

Criteria for Earning a Paper-Wise Exemption

To be eligible for a paper-wise exemption under the ICAI New Course, the basic requirement is that the student must secure the exemption threshold — typically 60% or more marks — in a specific paper. However, simply scoring high is not enough by itself: 

• Candidates must have appeared in all papers of the group in that exam cycle. 
• Exemption is granted only for that one subject where the high score was achieved. 
• The exemption status is indicated on the mark sheet with specific symbols after results are declared. 

This incentive encourages excellence and ensures prior efforts count toward future attempts.

Standard Validity of Exemptions

Under ICAI rules, a standard paper exemption is valid for the next three consecutive attempts of the same exam (Intermediate or Final). Once these three attempts are exhausted, the exemption naturally expires unless acted upon through the Permanent Exemption Window. 

For example, if you earned an exemption in a paper in the May 2024 attempt, it normally remains valid for the next three examination cycles — including May 2025, September 2025, and January 2026 — after which it would expire unless made permanent under the updated rules. 

The Permanent Exemption Window — New ICAI Update

The Permanent Exemption Window is a significant update that allows candidates to make exhausted exemptions permanent. Instead of losing a valuable exemption after three attempts, ICAI now offers a one-time opportunity to retain that benefit forever. 

For the May 2026 exam cycle, ICAI announced the window opening on 3rd March 2026 and closing on 22nd March 2026. During this period, eligible candidates can apply through the ICAI e-Services Self-Service Portal (SSP) to convert their exhausted exemptions into permanent ones. 

Once granted, permanent exemptions help in long-term planning and reduce the academic load by not requiring a candidate to reappear in that paper again, regardless of future exam cycles. This makes it crucial that you check your eligibility and apply within the specified window.

How to Apply for Permanent Exemption

Applying for permanent exemption is a straightforward digital process through ICAI’s SSP dashboard. Follow these steps: 

• Log in to SSP Portal: Use your ICAI registration credentials.
• Navigate to Exemption Section: Select the option for Permanent Exemption for Intermediate or Final.
• Select Paper(s): Choose the papers eligible for permanent exemption.
• Submit: Fill in all details accurately and confirm before final submission.
• Download Receipt: Save the confirmation for future reference.

Make sure you complete this before the deadline (22nd March 2026) to retain your exemption rights without hassles. 

Rules After Making Exemptions Permanent

Once an exemption is made permanent:

• The candidate must still secure 50% marks in each of the remaining papers of that group to pass later on. 
• If exemptions exist in two papers in the same group, ICAI requires either both papers to be made permanent or both to be allowed to lapse. Partial retention is not permitted. 
• Permanent exemptions are capped — marks in an exempted paper will count up to 50 only and cannot be used to meet aggregate percentage requirements. 

These rules ensure fairness while offering flexibility to the student.

Exemption Policy for CA Foundation

Under ICAI policies, no exemptions are granted at the Foundation level for a future attempt if a student fails a paper. However, certain candidates — such as commerce graduates with 55% marks or other graduates with 60% — are allowed to directly register for CA Intermediate, bypassing the Foundation level altogether. 

This is a separate entry-level exemption and is part of ICAI’s broader eligibility policy, intended to encourage merit and reward academic excellence.

Key Points Every Student Should Know

• Exemptions are paper-wise, not course-wide.
• Always check your SSP dashboard for eligible exemptions.
• Apply for permanent exemption only within the notified window.
• Permanent exemptions, once granted, cannot be reversed.
• Exemptions help reduce study burden and improve focus on remaining papers.

Understanding these nuances can drastically improve your CA planning strategy and reduce unnecessary exam attempts.