Ninjutsu (忍術, Ninjutsu; Literally meaning "Ninja Techniques") vaguely refers to pretty much any technique that uses chakra and allows the user to do something that they otherwise would be incapable of doing. Unlike genjutsu, which makes the opponent see illusions, the effects of ninjutsu are quite real. Ninjutsu relies on chakra and, most of the time, hand seals (each hand seal showing a different animal in the chinese zodiac) to be effective. The hands are put in sequential positions that mold chakra in the necessary manner to perform a jutsu. This is not always consistent, however, and some of the simpler jutsu seem to become second nature to experienced ninja, after which they can perform them at will. Additionally, some ninjutsu can be classified as an elemental jutsu, in those cases where a specific element (wind, water, fire, earth, lightning) is used
Taijutsu is a basic form of jutsu that generally speaking requires no chakra, but chakra may be used to enhance techniques. Taijutsu generally require no hand seals to perform and are much quicker to use than ninjutsu or genjutsu. Taijutsu is simply put, hand-to-hand combat or weaponry.
Although it is used by nearly all ninja, Rock Lee and his teacher Might Guy use taijutsu almost exclusively, and are experts on many taijutsu techniques. Example of Taijutsu techniques are Dynamic Entry and Leaf Whirlwind. The Hyuga Clan's Gentle Fist, however, makes extensive use of chakra and demands great skill in its control. The taijutsu techniques are the right choices for those that want to save their time and chakra, or for those who rely on their physical attributes.