Within this dharmaśāstra, punishment (daṇḍa) is envisioned as a graded instrument for preserving social order, rather than mere retribution. The text describes a spectrum of responses to wrongdoing, ranging from verbal reprimand and fines to physical penalties, banishment, and even death. These responses are not uniform; they are calibrated according to the gravity of the act, the intent behind it, and, crucially, the social status (varṇa) of both offender and victim. The king stands as the ultimate judicial authority, charged with weighing these factors to uphold dharma.

A prominent feature is the detailed use of fines and monetary penalties. Many offenses—such as theft of lesser value, defamation, false accusation, and certain forms of violence—are met with fines that vary according to the seriousness of the act and the social position of those involved. Restitution is often implied in cases of theft, and compensation may accompany or replace physical punishment in cases of injury. In this way, the text attempts to balance deterrence with a restoration of material and social equilibrium.

For more serious transgressions, the Manusmriti prescribes physical punishments and, in extreme cases, the death penalty. Corporal measures include flogging, branding, and various forms of mutilation, especially for repeated theft, grave acts of violence, and severe sexual misconduct. Death is reserved for crimes such as premeditated murder, certain forms of adultery and sexual offenses, high treason, and theft of significant amounts, though the exact application is conditioned by status and circumstance. Banishment or exile appears as an intermediate measure, used when the presence of the offender is seen as socially disruptive but their life is not taken.

Underlying all of this is a pronounced hierarchy: the same act does not yield the same punishment for all. Lower varṇa offenders, especially when harming or insulting those of higher status, are subject to markedly harsher penalties, including mutilation or death for offenses that might bring only fines or lighter sanctions upon higher varṇa individuals. Conversely, those of higher status, particularly brāhmaṇas, are often directed toward ritual penances rather than severe physical punishments, even when the moral gravity of the act is acknowledged. The entire system thus reflects an attempt to sacralize social stratification, presenting punishment as a means to sustain a cosmic and social order that is taken to be divinely sanctioned.