Abstract The philosophy of 'karma' is a doctrine considered to be the foundation stone of the entire Indian Philosophical outlook. The concept of karma is common to almost all traditional as well as contemporary Indian philosophical and religious systems. It is accepted as the dominating force throughout all the ages. Though the inquiry into the nature of karma and its significance takes us back to the Vedas in Indian philosophical tradition it is still a vibrating problem in philosophy. It has not only academic value but a clear understanding of karma has a perennial impact on life and existence even today. The Bhagavad Gita is the most beloved scripture of Indian thought and one of the prime chapters of this scripture is the 'law of karma'. According to it every man profits what he does and suffers what he does. Good deeds must bear the fruits of happiness and good fortune whereas evil deeds must bear the fruits of sorrow, misery, and ill-fortune. Good and evil thoughts, feelings, and actions have their corresponding results but the action is the greater part of life. The Gita said that the nature of karma was natural, inherent in man's existence and everybody has to work. As work is inevitable in one's life, one should work without seeking the result and the work without attachment to fruit will lead him to the highest attainment of God's consciousness. So, no one can remain unoccupied even for a moment. Bal Gangadhar Tilak is a great exponent of the philosophy of karma in Contemporary Indian thought. The most religious percept of Bhagavad Gita was a characteristic feature of Tilak's teaching. Tilak holds that the role of the philosophy of karma, as expounded in the Gita is pivotal in Indian thought through the ages. Tilak gives a new interpretation of the law of karma. He defined the philosophy of karma in terms of karma-yoga and it is well described by Tilak in his work entitled "Gita –Rahashya" or the "Karma-yoga-sastra". Hence an attempt is made here to discuss the law of karma as considered by the "Bhagavad Gita" and the "Gita-Rahashya".