The taxes collected from the individuals is the foundation of the Indian Economy. Even though, NRIs live in abroad, they still have a source of income in India. So, they are also liable to pay Income Tax in India. NRI Taxation under Income Tax Act, 1961, implies that any NRI who has his/her source of income in India which exceeds Rs.2,50,000, is liable to pay income tax in India. July 31 is the last date to file income tax returns in India for NRIs.