Extension of ICAI CPE Hours Compliance Deadline to Feb 2025

The Institute of Chartered Accountants of India (ICAI) has extended the deadline for members to complete their Continuing Professional Education (CPE) hours for the calendar year 2024. Originally set for December 31, 2024, the new compliance deadline is February 28, 2025. This extension aims to ease the transition into the “Statement on Continuing Professional Education, 2023,” which introduces consequential provisions for non-compliance effective January 1, 2025. Members who complete their CPE hours within the extended timeframe will have these hours counted for 2024 if there is a shortfall. For members who meet the original deadline, hours earned between January 1 and February 28, 2025, will be credited for 2025. Updated compliance measures include a four-level framework for addressing non-compliance, culminating in potential disciplinary actions. Provisions for temporary exemptions due to critical illnesses or disabilities remain intact. Members are encouraged to review detailed guidelines and ensure compliance to avoid penalties such as deferred issuance of good standing certificates or provisional peer review certificates. Additional resources and specifics on structured and unstructured learning activities are available on ICAI’s official website.

Continuing Professional Education Committee
The Institute of Chartered Accountants of India
30th December, 2024

ANNOUNCEMENT FOR MEMBERS

Dear Member,

Sub: Extension of last date of CPE hours’ compliance for the Calendar year 2024 – From 31st December, 2024 to 28th February, 2025

As you are already aware that “Statement on Continuing Professional Education, 2023” (available at link https://taxguru.in/chartered-accountant/icai-cpe-statement-2023-guidelines-continuing-professional-education.html) has been made effective from Calendar year 2024 onwards, which introduced consequential provisions for non-compliance with CPE hours’ requirements applicable to various categories of members on yearly basis. These consequential provisions are applicable w.e.f. 1st January, 2025 for non-compliance arising from the Calendar Year 2024 with regard to CPE hours requirements.

As consequential provisions arising due to non-compliance with CPE requirements are coming into effect for the first time from Calendar year 2024, it has been decided to extend the last date for complying with the CPE hours requirements for the Calendar year 2024 from 31st December, 2024 to 28th February, 2025, for the benefit of Members at large and to avoid any hardship due to non-compliance.

On similar grounds, the last date of compliance and filing Unstructured Learning Activities (ULA) is also extended till 28th February, 2025, for the Calendar year 2024.

Further, it may please be noted that the duration of consequential provisions at Level I (from January 1st to June 30th) would be changed to March 1st to June 30th for Calendar year 2024 and the subsequent levels (II, III and IV) under the consequential provisions for non-compliance with CPE hours will remain unchanged.

For ready reference, consequential provisions for non-compliance with CPE hours requirement on yearly basis from calendar year 2024 onwards are available at https://resource.cdn.icai.org/79152cpe63323.pdf

It may be noted that due to the extension of last date for compliance of CPE hours’ requirements for the Calendar year 2024 till 28th February, 2025, the CPE hours earned up to 28th February, 2025 will be counted for the calendar year 2024 – for only those Members who have shortfall of CPE credits for the Calendar year 2024. Further it is to be clarified that CPE Hours completed in extended period (01.01.2025 till 28.02.2025) will be credited/counted for Calendar year 2025 for those Members who have already complied with CPE Hours requirements as required for Calendar year 2024 till 31st December, 2024.

The above may be noted by the Members for timely compliance of CPE Hours requirements for Calendar year 2024 and latest by 28th February, 2025.

Continuing Professional Education Committee

The Institute of Chartered Accountants of India
(Set up by an Act of Parliament)
‘ICAI BHAWAN’, A-29, Sector 62, Noida 201309
Website: http://www.icai.org, www.cpeicai.org
E-mail : cpeadmin[at]icai[dot]in

Consequential provisions for non-compliance with CPE hours requirement on yearly basis from calendar year 2024 onwards

(to be operational w.e.f. 1/1/2025 for non-compliances arising from the calendar year 2024) Level I (from 1^st Jan to 30^th June)

1. Member who fails to complete the CPE requirement by the end of the calendar year shall be given extended Period of 6 months i.e. till June 30 of the following year to make up for the shortfall, provided the member(s) shall make up for any shortfall in their CPE credit hours by obtaining twice the shortfall of CPE hours. This would be in addition to the regular CPE hours requirement for the current calendar year. Member(s) shall be notified of the shortfall of CPE hours through e-mail.

Level II (from 1^st July to 31^st Dec)

2. Names of Member(s) who fail to make up for the shortfall on expiry of the extended Period as aforesaid in paragraph 1, shall be classified to non-compliance status on July 1 and the details of non-compliance status shall be displayed in CPE Portal of the ICAI under particular Member’s login till the Member is fully compliant. The member(s) shall make up for the shortfall for the calendar year by obtaining twice the shortfall of CPE hours for the relevant year in which the shortfall has occurred.

Level III (from 1^st Jan to 30^th June of Next year)

3. If the member continues to be non-compliant for the period given at Level-II above, the CPE Committee may resort to the following measures on 1^st January of the following calendar year:

In case of member(s) holding Certificate of Practice (COP)- The Member is required to disclose the of status of non-compliance of CPE hrs requirement in Multipurpose Empanelment Form (MEF) of ICAI. List of non-compliant members shall also be provided to Professional Development Committee of the ICAI by CPE Committee of ICAI.

Member(s) shall be given 6 months’ time (i.e. from 1^st January till 30^th June) at this level to complete the shortfall in their CPE hour credit by completing twice the shortfall to get fully compliant status for the respective year.

Level IV: (from 1^st July to 31^st Dec of Next year)

4. If the non-compliance by the Member continues even after the Level III stage as above, i.e., 1.5 years of extended period for compliance) then following consequences would follow.

If the Member is in Practice (i.e. Holding COP) – If the individual or the firm is otherwise eligible for the issuance of Peer Review Certificate, only Provisional Peer Review Certificate would be issued to such individual or the Firm in case if the individual or any partner of the Firm (as the case may be) has not complied with the requirement of these guidelines. Final Peer Review Certificate shall be issued to the individual or the firm only after compliance of CPE hrs requirement as per these guidelines by the individual or all the partners of the firm (as the case may be).

The member(s) shall be given additional 6 months’ time (i.e. from 1^st July till 31^st December) at this level to complete the shortfall by completing twice the shortfall in their CPE hour credit to be eligible to get fully compliant status for the respective year and for issuance of Final Peer Review Certificate. The member shall be informed in advance that if the default still continues then, such non-compliance would be liable to be referred to Disciplinary Directorate for necessary action in accordance with provision of CA Act, 1949.

Issuance of Good Standing Certificate to member shall be deferred at all levels until the member complies with the requirement under these CPE guidelines.

If the non-compliance continues even after the aforesaid multiple opportunities, the CPE Committee may refer the matter³ to Disciplinary Directorate for action as deemed fit for the violation of these guidelines.

Power to relax:

The Council may relax any of the requirements of these guidelines either generally or by issuing specific instructions on case to case basis for reasons to be recorded in writing.

Note:

• Consequential provisions shall apply to non-complying members who have not complied/failed to complete CPE hours requirements as applicable e.f. 1st Jan 2024 and onwards i.e. members who are non-complied for the year 2023 and earlier are not proposed to be covered with these provisions.
• Level wise Consequential provisions apply to the non-compliance of CPE hours requirement by a member on yearly basis only i.e. these provisions do not apply for non-compliance of (2+2) recommendatory CPE hours of Code of Ethics and Standards on Auditing.
• If a member is obtaining CPE hour Credits (ULA/SLA) in next year after being non-complied in preceding year(s), then such CPE hour credit (ULA/SLA) would be first adjusted against shortfall in previous non-complied year(s) and after such adjustment the remaining CPE hrs, if any, would be credited in current year.
• Currently, out of 20 Structured CPE Hours which is required to be completed by COP holder (less than 60 years of Age), completion of 4 CPE hrs is allowed in online mode in a year. If in case, member has acquired 4 or less Structured CPE Hours in online mode in a Calendar year, in next year non-complied balance Structured CPE hours of any category (whether in physical/virtual) is to be completed via Structured CPE hours events being organised in physical mode/certificate courses during the grace period provided in subsequent years.
• Date of submission of ULA (Unstructured Learning Activity) is preponed from 31st May of next year to 31st December of current year.
• If CPE Compliance criteria differs in relevant year of non-compliance and in extended period i.e. change of member status (COP/Non-COP)/ compliance requirement changed due to attainment of certain age/ Address change /given by the Council then it is to clarify that member need to complete twice of shortfall as per applicability of CPE Compliances in that year of Non-compliance through ULA (Unstructured Learning Activity). This is not applicable in case of permanent exemption provided in grace period.
• There shall be no carry forwarding of excess CPE Hours.
• Relaxations/Exemptions (permanent/temporary) to members in cases like critical illness/physical disabilities/ pregnancy etc. shall continue with these proposed provisions.
• For Temporary exemption, extended period would start on 1st January of next year in which temporary exemption was granted.
• After Level 2, flagging would be done in CPE/Peer Review /SSP portal to Non complied members.
• A provision has been created in CPE portal, to facilitate a monthly mail to all members of ICAI with compliance data of respective member. This Compliance data would also be visible to the member in their Dashboard at CPE Portal.

CONSEQUENTIAL PROVISIONS FOR NON-COMPLIANCE WITH CPE HOURS REQUIREMENT ON YEARLY
BASIS” FROM CALENDAR YEAR 2024 ONWARDS

Illustration for Calendar Year-2024

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³ To clarify, the ‘’matter’’ refers to details of such non-complying members who are COP holders and covered under Point 1 as under:

CPE HOURS REQUIREMENTS FOR EACH CALENDAR YEAR APPLICABLE FROM 1 – 1 – 2023 ONWARDS

1. All the members (aged less than 60 years) who are holding Certificate of Practice (except all those members who are residing abroad) are required to:

a. Complete at least 40 CPE credit hours in each Calendar Year.

b. Complete minimum 20 CPE credit hours of structured learning during the calendar year.

c. Balance 20 CPE credit hours can be completed either through Structured or Unstructured learning (as per Member’s choice).

2. All the members (aged less than 60 years) who are not holding Certificate of Practice; and all the members who are residing abroad (whether holding Certificate of Practice or not) are required to:

a. Complete at least 20 CPE credit hours of either structured or unstructured learning (as per Member’s choice) during the calendar year.

3. All the members (aged 60 years & above) who are holding Certificate of Practice, are required to:

a. Complete at least 30 CPE credit hours of either structured or unstructured learning (as per member’s choice) during the calendar year.

4. The following class of members are exempted from CPE credit hours requirement:

A. A member is exempted only for the particular Calendar year during which he gets membership for the first time.

B. Other Exemptions to members:

i. All the members (aged 60 years and above) who are not holding Certificate of Practice.

ii. Judges of Supreme Court, High Court, District Courts and Tribunal

iii. Members of Parliament/MLAs/MLCs

iv. Governors of States

v. Centre and State Civil Services

vi. Entrepreneurs (owners of Business (manufacturing) organizations other than professional services)

vii. Judicial officers

viii. Members in Military Service

C. Temporary Exemptions:

i. Female members for one Calendar year on the grounds of pregnancy.

ii. Physically disabled members on case to case basis having permanent disability of not less than 40% and above (Supported with medical certificates from any doctor registered with Indian Medical Council with relevant specialisation as evidenced by Post Qualifications (M.D., M.S. etc.).

iii. Members suffering from prolonged critical diseases/illnesses or other disability as may be specified or approved by the CPED. (Supported with medical certificates from any doctor registered with Indian Medical Council with relevant specialisation as evidenced by Post Qualifications (M.D., M.S. etc.).

Note:-

1. The Council has decided to have mandatory (may read as Recommendatory from Calendar Year 2024 onwards²) 2 Structured CPE Hours each on topics of “Standards on Auditing” and “Code of Ethics” (total 4 Structured CPE Hours) during every Calendar year through DLH/Physical mode (applicable from Calendar Year 2020 onwards) for the Categories of members who are required to complete minimum 20 Structured CPE Hours in a Calendar year (COP Holder). This may be completed any time during the year through DLH/Physical mode.

2. Out of 20 Structured CPE Hours which is mandatory to be completed by Members below 60 years and holding COP, in each Calendar year starting from 2023 (including mandatory which may read Recommendatory from Calendar Year 2024 onwards 2 CPE hours on “Code of ethics” and “Standard on auditing”), 4 Structured CPE Hours can be completed in virtual mode through Digital Learning Hub till any further modification. For Calendar Year 2023, the members who have already earned 4 or less Structured CPE hours in online mode (through VCM/DLH) till 31.03.2023 will get credit on actual basis.

Further, Members may also note that structured CPE hours obtained in online mode over and above, as allowed above shall continue to be counted as Unstructured CPE Hours for compliance purpose. However, total Structured CPE hours obtained in physical mode (apart from online mode as allowed) shall continue to be counted as Structured CPE Hours.