Conversion of Resident Savings Account to NRO Account - Penalty

[trjj74]

Hi All - It seems that I have forgotten to convert one of my Resident Savings Accounts in India (SBI Bank) to a NRO Account. I am planning to go ahead with the same. I was reading the penalties - seems pretty stiff.

If I go ahead with the same, will I be charged a Penalty OR will a Penalty be charged ONLY if I am caught in an audit. Has anybody faced these issues and how did they overcome the same without paying the penalty.

[victormarcel09]

If you have realized that you should have converted your account earlier but didn't, it might be a good idea to proactively rectify the situation by approaching your bank and following the proper procedure for converting your account to an NRO Account. Voluntarily disclosing and rectifying the issue may be viewed more favorably by authorities compared to being caught during an audit.
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