You are liable to pay taxes for just the income (through business or other dealings) earned in India. The Income Tax department classifies an individual to be a non-resident when:
Your status of being a resident or an NRI depends on the above criterion. For example, if you are an NRI and were physically present in India for more than 182 days during one financial year, then you will be considered as a resident when it comes to taxes. And you have to pay taxes to the Indian government for the income earned in India for that year.
As the income earned while living abroad does not come under I-T Act, it would be taxed for the same. All the earnings abroad are out of the tax net as the NRI status is being maintained. But any income or capital gains made in India would come under the tax net in a financial year.
Salary: Income earned in India or received on your behalf is taxable.
Property and assets: Any income or capital gain from the sale, rent or lease of a property or an asset in India will be taxed as per the Income Tax rules.
Securities and Investments: Income or capital gains from long-term or short term investments are liable to be taxed.
As per Income Tax Act,1961 and Foreign Exchange Management Act (FEMA), you qualify to pay taxes in case you fulfil either of the following conditions:
NRIs cannot file for tax returns under the following circumstances: If taxable income consists of only investment income or long term capital gains and when the tax has already been deducted at source, on such income.