CA Foundation Exam Rules Under the New Scheme: Papers, Negative Marking, Attempts and Registration Validity

Most Foundation students know there are four papers. Far fewer know the rules that decide when they can sit, how many chances they get and how a quarter-mark penalty changes their score. This is a rules reference, built from ICAI's own FAQs on the New Scheme of Education and Training and the Examination Department's announcement for January 2027. For a paper-by-paper study approach, read our separate guide to the CA Foundation exam pattern and passing marks.

The Scheme You Are Under

ICAI launched the New Scheme of Education and Training on 1 July 2023. ICAI's new-scheme syllabus and weightage apply to Foundation exams from the 2024 cycle onwards (the weightage notice says May 2024 and later). If you registered under the old scheme, ICAI's conversion rules apply to you, so check your status on the Self Service Portal (eservices.icai.org) rather than relying on a coaching handout.

The Four Papers

Paper 1, Accounting (100 marks): subjective (descriptive), 3 hours, 2 PM to 5 PM IST.
Paper 2, Business Laws (100 marks): subjective, 3 hours, 2 PM to 5 PM IST.
Paper 3, Quantitative Aptitude (100 marks): objective, 2 hours, 2 PM to 4 PM IST. Three parts: Business Mathematics (40 marks), Logical Reasoning (20) and Statistics (40).
Paper 4, Business Economics (100 marks): objective, 2 hours, 2 PM to 4 PM IST.

Papers 1 and 2 get 15 minutes of advance reading time (1.45 PM to 2 PM IST). Papers 3 and 4 get none, so the clock starts on the first question. The recent objective papers (for example May 2026 Paper 3) carry 100 compulsory questions for 100 marks, answered on an OMR sheet. You can answer in English or Hindi; you choose the medium on the exam form.

Negative Marking

ICAI deducts 0.25 marks for every wrong answer in the objective papers. There is no penalty in Papers 1 and 2. In Papers 3 and 4 a blank scores zero.

Worked example. In Paper 3 you answer 82 questions and leave 18 blank. 66 are correct and 16 are wrong.

Marks for correct answers: 66 x 1 = 66
Deduction: 16 x 0.25 = 4
Score: 66 - 4 = 62

Had you guessed all 18 blanks at random, you would expect about 4.5 right and 13.5 wrong: +4.5 - 3.4 = roughly +1.1 marks, with real risk of losing more. Guess only when you can rule out at least two options.

The Passing Rule

You pass Foundation if, at one sitting, you score at least 40% in each paper and at least 50% in the aggregate of all four papers (200 out of 400). ICAI's FAQ describes no paper-wise exemption at Foundation, so plan to clear all four in the same attempt.

48, 41, 62, 54 = 205. Every paper is 40 or above and the total is over 200: pass.
44, 40, 58, 52 = 194. Every paper clears 40, but the total is 6 short: not a pass, and all four papers must be taken again.
39, 60, 75, 66 = 240. A strong total, but one paper is below 40: not a pass.

How Many Attempts a Year

Foundation exams are now held three times a year: January, May and September. ICAI moved Foundation and Intermediate from two sittings to three in 2024. CA Final remains twice a year.

The January 2027 Foundation papers are on 3, 5, 7 and 9 January 2027 (ICAI announcement dated 23 September 2026). Online exam forms opened on 3 November 2026; the last date without late fee is 16 November 2026, and with a late fee of ₹600 it is 19 November 2026. A correction window for exam city and medium runs from 20 to 22 November 2026. The exam fee for Indian centres is ₹1,500.

When You Become Eligible

Registration: you can register for Foundation after passing Class 10.
First attempt: only after you have appeared in the Class 12 examination.
Four-month cut-off: you must be registered on or before the 1st day of the month that falls four months before the exam month. For January exams that is 1 September of the previous year; for May, 1 January; for September, 1 May.

Example. You finish Class 12 boards in March 2026 and register with the Board of Studies on 20 January 2026. The 1 January 2026 cut-off for May 2026 has passed, so your first eligible attempt is September 2026.

ICAI's FAQ (last updated 27 September 2024) puts the Foundation registration fee at ₹9,000, including study material. Fees change, so confirm on the ICAI Foundation page before you pay.

How Long Your Registration Lasts

Foundation registration is valid for 4 years from your first eligible attempt, and ICAI does not permit revalidation at Foundation level. With three sittings a year, that window covers up to twelve exam sessions in principle. In practice, every failed attempt costs you four months of Intermediate study time, so treat the first attempt as the one that counts.

What Changes Your Plan

Objective papers are aggregate builders. A well-prepared student can push QA into the 70s; that buys slack for the written papers.
No reading time in Papers 3 and 4. Your 2 hours are pure answering time, 72 seconds a question.
The penalty is small but real. Most marks are lost to slips on questions you know, not to guesses.

Drill the objective papers chapter by chapter with our free Quantitative Aptitude MCQ bank and Business Economics MCQ bank, then switch to timed tests on the QA and BE practice pages. For the final month, our guide to ICAI RTPs, MTPs and past papers covers the official mocks.

FAQs

Which CA Foundation papers have negative marking?
Only the objective papers, Paper 3 (Quantitative Aptitude) and Paper 4 (Business Economics): 0.25 marks are deducted for each wrong answer.

How many times a year is CA Foundation held?
Three: January, May and September.

Can I carry forward a good score in one Foundation paper?
No. ICAI's FAQ describes no paper exemption at Foundation; you need 40% in each paper and 50% in aggregate in the same sitting.

How long is CA Foundation registration valid?
Four years from your first eligible attempt, with no revalidation.

Can I write the exam in Hindi?
Yes. ICAI allows English or Hindi medium for Foundation, selected on the exam form.

Is there reading time in the MCQ papers?
No. Only Papers 1 and 2 get the 15-minute advance reading time.

Sources

ICAI, FAQs on the New Scheme of Education and Training (last updated 27 September 2024): papers, objective/subjective split, negative marking, passing rule, three sittings a year, registration cut-offs, fee, validity.
ICAI Examination Department, Important Announcement for January 2027 examinations (23 September 2026): dates, timings, reading time, exam form dates and fees, Hindi medium.
ICAI BoS, Foundation syllabus with section-wise weightage (issued 26 October 2023).
ICAI, Foundation May 2026 Paper 3 question paper.
ICAI BoS, examination announcements. Always check here for changes after November 2026.