Complete GST lifecycle on one platform Complete GST lifecycle on one platform
Hyper-automation Hyper-automation
Smart reports & recon Smart reports & recon
Accurate filing Accurate filing

CA Day and Why We Celebrate It

Updated on: Jul 6th, 2021

|

4 min read

social iconssocial iconssocial iconssocial icons

On July 1st, 1949, an act of Parliament gave birth to the Institute of Chartered Accountants of India (ICAI). Founded a year before the Constitution of the country was formalized, the ICAI counts itself among the oldest professional institutions in the country. It is the second largest professional accounting and finance body in the world in terms of members, with a current roster of about 2.5 lakhs members.

The ICAI is the sole licensing and regulatory body for the financial audit and accounting profession in India, and its recommendations are followed by everyone – from the National Financial Reporting Authority (NFRA) to companies and accounting organizations. To be a part of the ICAI’s member list as a bona fide Chartered Accountant is a prestigious honor indeed – one that is celebrated every 1st of July, as the ICAI Foundation Day or, the Chartered Accountants Day.

5 Amazing facts about the ICAI

ICAI: The History

The genesis of the CA profession can be traced back to the pre-independence days. Back in 1913, the British government in India passed the Companies Act, which had a prescribed list of books that every company registered under the Act had to maintain. The Act also provided for the appointment of an Auditor who had the power to audit these books. Five years later, the Government Diploma in Accountancy course was launched in Bombay (present-day Mumbai).

This course had a pattern similar to today’s CA course, complete with a three-year training period. Those who completed the course could practice as an Auditor throughout India. In 1930, the then Government of India decided to maintain a register of accountants and proffered the title of Registered Accountant to those accountants whose name was entered into this roster. However, even with all these practices, the accountancy profession remained unregulated until an expert committee created in 1948 suggested that an autonomous body should be formed, for enhanced regulation.

By then though, many Indians had already become members of the Institute of Chartered Accountants in England and Wales (ICAEW) and were known by the term Chartered Accountants. Despite the controversy surrounding the term, it was retained as it was already widely used. Thus, when the Chartered Accounts Act of 1949 was passed and the ICAI came into being, the term Chartered Accountant became the preferred title instead of the previously used Registered Accountant.

Since then, 1st July has been commemorated as the ICAI Foundation Day or CA Day in India. Just to be clear, unlike in other Commonwealth countries, the word ‘Chartered’ when used for Indian accountants, has no relation to the royal charter of the British (as India is a republic)!

The ICAI Motto and What It Means

The ICAI has a very strict code of ethics. Its official motto is a quote from the Upanishad which reads “Ya esha supteshu jagriti”. It translates as “the one who is awake in those that sleep”. A CA is honour-bound to follow the ICAI’s regulations and to always be compliant and vigilant. Even when a client is lax about their taxes, it is the CA’s duty to help them become better tax-paying citizens of the country.

Businesses small and large need an expert’s help, and a CA is always willing to come to the rescue. It’s something that is ingrained in their DNA, and the CA Day is just a ruse to celebrate and acknowledge the profession’s importance to the country’s economy.

inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute
CONTENTS

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption