By Rahul Choudhary · Founder, IndiaSchool AI Pvt Ltd
Every CA aspirant hears "40 and 50" within their first week of coaching, but few get the full rule — including the combined-groups route and the exemption mechanics that decide whether a near-miss becomes a pass. Verified line by line against ICAI's own published FAQ on the New Scheme.
The same two numbers govern every CA level. What changes is the pool they're applied to — all four Foundation papers together, or one Intermediate/Final group of three at a time.
| Level | Minimum per paper | Minimum aggregate | Exemption at 60%+? |
|---|---|---|---|
| CA Foundation | 40% in each of 4 papers | 50% of all 4 papers combined (200/400) | No — Foundation has no exemption scheme |
| CA Intermediate | 40% in each paper of the group | 50% per group (150/300), or 50% across both groups together if sitting both | Yes, per paper, for the next 3 attempts at that group |
| CA Final | 40% in each paper of the group | 50% per group (150/300), or 50% across both groups together if sitting both | Yes, per paper, for the next 3 attempts at that group |
ICAI's own FAQ puts it plainly: a student passes Foundation "if he/she obtains at one sitting a minimum of 40% marks in each paper and a minimum of 50% marks in the aggregate of all the papers." All four papers are one pool — there's no group split at this level.
Worked example: 45, 40, 55, 62 across Papers 1-4 totals 202/400 (50.5%) with every paper at or above 40 — a clear pass. Swap that 40 for a 38 anywhere and the attempt fails regardless of how high the aggregate is; the 40% floor is non-negotiable per paper.
Foundation Papers 3 and 4 are 100% objective, and ICAI confirms 0.25 marks are deducted per wrong answer on those two papers — a wrong guess can pull you under the 40% floor even if it looked safe on paper count alone.
Most explanations stop at "clear each group separately," but ICAI's FAQ actually lists two ways to pass both groups simultaneously if you sit for both in the same attempt:
You can also clear the two groups in entirely different attempts — each is independently valid once it individually satisfies the 40%-and-50% rule (route a's logic applied to one group at a time).
If you appear in every paper of a group, fail the group overall, but score 60% or more in one or more of its papers, ICAI exempts you from re-attempting those specific papers for your next three attempts at that group. The exempted marks carry forward and count toward the group's aggregate; you still need 40% in each remaining paper and 50% aggregate across the whole group, exempted marks included, to pass.
If three attempts pass and the group is still unresolved, you can opt to continue the exemption — ICAI calls this permanent exemption — but the bar rises: you then need a flat 50% (not 40%) in each of the remaining papers to close out the group. ICAI's exam department publishes a separate application window for this each cycle; check the current one on the Examination services page before assuming your exemption is still active.
Full syllabus for the level: CA Intermediate guide.
ICAI's FAQ answers the Final passing-criteria question with the same two routes and the same exemption mechanics as Intermediate — 40% per paper, 50% per group or 50% across both groups combined, a 60% exemption for the next three attempts, and the same permanent exemption fallback at a 50% bar per remaining paper. Nothing about the rule itself changes between the two levels; only the papers and marks distribution differ.
One Final-specific wrinkle: Paper 6 (Integrated Business Solutions) is open-book and assessed 40% MCQ / 60% descriptive rather than the 30:70 split every other paper uses, but the 40%-and-50% passing arithmetic treats it exactly like any other 100-mark paper in Group II.
Full syllabus for the papers with a built hub: Financial Reporting, Advanced Auditing, Direct Tax, Indirect Tax.
The 40% floor trips up more students than the 50% aggregate does. A strong paper can't rescue a weak one — scoring 70, 70, 65 and 38 fails the group even though the total (243/300, 81%) clears the aggregate by a wide margin. Every paper has to independently clear 40 before the aggregate is even checked.
The combined-groups route (b) is the one most self-study students don't realise exists. If you're weak in one group and strong in the other, sitting both together and letting the strong group's surplus cover the weak group's shortfall — while still keeping every individual paper above 40% — can be a faster route to clearing the level than passing each group separately across two different attempts.
On exemptions: ICAI's published rules describe no general condonation or grace-marks provision for CA Intermediate or Final — the 40%/50% figures above are not rounded up or adjusted for a marginal miss. If you're a mark or two short, treat it as short. The only formal relief mechanism is the 60% exemption described above, and it only applies if you appeared in every paper of that group in that attempt.
Sourced directly from ICAI's Board of Studies "Frequently Asked Questions on New Scheme of Education and Training" (icai.org), specifically the passing-criteria and exemption questions for the Foundation, Intermediate and Final courses, cross-checked against ICAI's published negative-marking and MCQ-share rules. CA Grader is not affiliated with ICAI — verify your own exemption status and any live permanent-exemption window on icai.org's Examination services page before relying on this for exam-day or attempt-planning decisions, since ICAI can and does revise these via circular.
Practice real ICAI MCQs with instant scoring, or write a full descriptive answer and get ICAI step-marked AI feedback so you know exactly where the 40% floor stands.