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The theory for the calculation of nuclear shielding constants with London atomic orbitals using density functional theory is presented. The theory includes the use of a local exchange–correlation functional which depends on both the electron density ρ(r) and the paramagnetic current density jp(r). The resulting coupled-perturbed Kohn–Sham equations are presented, together with the working expression for the nuclear shielding tensor. The entire theory has been programmed and exhaustively checked, using standard Gaussian basis sets. A variety of ρ(r) dependent exchange–correlation functionals have been used, together with a current dependence suggested by Vignale, Rasolt, and Geldart. Certain numerical difficulties arose with this form which necessitated a cutoff in its evaluation for low densities. Calculations have been performed on HF, N2, CO, F2, H2O, and CH4. Including the current dependence is seen here to have a slightly deshielding effect. The major deficiency in the reported calculations appears to arise from the use of local functionals which give poor values for the Kohn–Sham eigenvalues. © 1995 American Institute of Physics. [ABSTRACT FROM AUTHOR]