Question
How does the exemption (set-off) rule work in CA exams?
Answer
Bottom line: Scoring 60 or more in a paper earns an exemption you can carry to the next three attempts.
1. The rule
If you appear in all papers of a group, fail the group but score 60 or more in a paper, that paper is exempt for the next three exams.
2. Permanent option
If you do not clear the group in those attempts, you may continue the exemption, but must then score 50% in each remaining paper.
3. Aggregate
The exempted paper's marks still count towards your aggregate.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.