Taxes are imposed in Direct and Indirect ways and NRIs need to be aware of them.
There are various taxes like

• Income tax
• Wealth tax
• Property tax
• Gift Tax
• Taxes on transfers/ mutation / succession etc.

It is helpful to know the beneficial provisions for NRIs so as to:

• Reduce tax incidence by proper tax planning.
• NRIs can explore beneficial provisions available under various ‘Double Taxation Agreements’ (Tax Treaty) that India has entered into with various countries.
• These tax treaties often provide lower tax rates and exemptions in addition to those available under the domestic tax provisions. 
• Double taxation should be avoided. For instance In case the NRI is taxed in the home country on the rental income derived from India, then he could consider claiming exemption or tax credit in the home country based on the double tax treaty agreement entered into India with such country, if any. 
• NRIs must obtain a PAN. Tax Returns are not accepted without PAN. Therefore, if a tax return is to be submitted, NRIs must obtain a PAN.
• Investments in Indian companies/Government Securities in foreign exchange are taxable at lower rates.
• Shares of any Indian company, debentures of any Indian public company, deposits with any public company or any security of the Central government, which are purchased with foreign currency, are given special tax treatment.
• The interest income from these investments is taxable at a flat rate of 20% and long-term capital gains on sale of these investments are taxable at a flat rate of 10%.
• The sale of these investments is exempt from tax if the sale proceeds are reinvested in similar investments within six months. If the sale proceeds of these assets are partially reinvested, then the exemption is proportionate to the amount re-invested.
• There is a special method of elimination of foreign exchange fluctuation in computing capital gains on the shares/debenture of an Indian company, acquired in foreign currency by nonresidents.
• Interest earned by NRIs on Non Resident External (NRE) bank account is exempt from tax However, interest in Non Resident Ordinary (NRO) bank account is taxable.
• Wealth Tax is not applicable on assets held outside India by NRIs. A NRI is not subject to wealth tax in respect of assets held outside India.