Karma is action, its cause, and effect. There is no uncaused action, nor action without effect. The past, the present, and the future are linked together as one whole. The ichchha, jnana, and kriya shakti manifest in the jivatma living on the worldly plane as desire, knowledge, and action. As the Brihadaranyaka Upanishad says: "Man is verily formed of desire. As is his desire, so is his thought. As is his thought, so is his action. As is his action, so is his attainment." These fashion the individual's karma. "He who desires goes by work to the object on which his mind is set." "As he thinks, so he becometh." Then, as to action, "whatsoever a man sows that shall he reap." The matter is not one of punishment and reward, but of consequence, and the consequence of action is but a part of it. If anything is caused, its result is caused, the result being part of the original action, whigh continues, and is transformed into the result. The jivatma experiences happiness for his good acts and misery for his evil ones.

Karma is of three kinds, viz., sanchita karma, that is, the whole vast accumulated mass of the unexhausted karma of the past, whether good or bad, which has still to be worked out. This past karma is the cause of the character of the succeeding births, and, as such, is called sangskara, or vasana. The second form of karma is prarabdha, or that part of the first which is ripe, and which is worked out and bears fruit in the present birth. The third is the new karma, which man is continually making by his present and future actions, and is called vartamana and agami. The embodied soul (jivatma), whilst in the sangsara or phenomenal world, is by its nature ever making present karma and experiencing the past. Even the Devas themselves are subject to time and karma. By his karma a jiva may become an Indra.

Karma is thus the invisible (adrishta), the product of ordained or prohibited actions capable of giving bodies. It is either good or bad, and together these are called the impurity of action (karmma mala). Even good action, when done with a view to its fruit, can never secure liberation. Those who think of the reward will receive benefit in the shape of that reward. Liberation is the work of Shiva-Shakti, and is gained only by brahmajnana, the destruction of the will to separate life, and realization of unity with the Supreme. All accompanying action must be without thought of self. With the cessation of desire the tie which binds man to the sangsara is broken.

According to the Tantra, the sadhana and achara (q.v.) appropriate to an individual depends upon his karma. A man's tendencies, character, and temperament is moulded by his sanchita karma. As regards prarabdha-karmma, it is unavoidable. Nothing can be done but to work it out. Some systems prescribe the same method for men of divers tendencies. But the Tantra recognizes the force of karma, and moulds its method to the temperament produced by it. The needs of each vary, as also the methods which will be the best suited to each to lead them to the common goal. Thus, forms of worship which are permissible to the vira are forbidden to the pashu. The guru must determine that for which the sadhaka is qualified (adhikara).