NRI taxation refers to the income tax obligations of Non-Resident Indians (NRIs) as per the Income Tax Act, 1961. An NRI is taxed in India on income earned or received in India, including salary, interest from bank accounts, capital gains from property or securities, and rental income. Income earned outside India is generally not taxable for NRIs in India. NRIs can avail of benefits under Double Taxation Avoidance Agreements (DTAA) to avoid being taxed in both countries. Tax rates for NRIs differ based on income type; for example, interest from NRO accounts is taxed at 30%, while long-term capital gains may have different rates. NRIs are required to file Income Tax Returns if their income exceeds the basic exemption limit and to disclose income from Indian sources. Proper documentation such as PAN, bank statements, and property records is essential for compliance. Professional assistance is recommended to compute taxable income, claim deductions, and ensure accurate filing of returns. Timely compliance helps NRIs avoid penalties, reduce tax liability through DTAA provisions, and maintain legal adherence in India.