Tauba Tauba tells the story of two kids - Sunny [Amin Gazi] and Lokesh, who, like most adolescents, are attracted to the opposite sex. So much so that they even eye their teachers [Supriya Karnik].
The first term comes to an end and the children return to their homes. Sunny goes back to his empty mansion in Pune and finds his millionaire father, Mr. Shanbaug [Ayub Khan], like always, immersed in his work. A heart-broken and lonely Sunny starts visiting porn sites on the internet.
Rocky [Rocky Sandhu], Shanbaug's trusted manager, watches Sunny going through the various adult sites. Rocky is desperate to become a film producer and start a film with Shah Rukh Khan. He has even taken a loan of Rs. 10 lakh from one Sultanbhai from Multan, but its payback time now. Or else, Sultan's three henchmen, Amar [Tej Sapru], Akbar [Anil Nagrath] and Anthony [Ashok], will eliminate him.
Lokesh visits Sunny one day and informs him of this alluring woman who has come to live next to Sunny's mansion. The young woman is Payal [Payal Rohatgi], who lives all by herself.
Sunny gets friendly to Payal. And one night, Payal seduces Sunny and both spend some intimate moments together. The next morning, as Sunny wakes up, he finds Payal dead.