BNS Section 306: Theft by clerk or servant (2026)

Explainer · Criminal Law · BNS

Updated for 2026 · Claw Editorial

Section 306 of the Bharatiya Nyaya Sanhita (BNS) punishes theft by a clerk or servant of property in the possession of the master. The BNS is the new criminal code in force since 1 July 2024, and Section 306 replaced Section 381 of the Indian Penal Code (IPC). The punishment is imprisonment up to seven years, and a fine. If you still look up "Section 381 IPC", this is the provision you now need. This explainer sets out what Section 306 covers, how it maps to the old law, the punishment, and what changed. Last verified October 2026.

01Why the section number matters now

Since 1 July 2024, the Indian Penal Code (IPC) is replaced by the Bharatiya Nyaya Sanhita, 2023 (BNS). Theft by a clerk or servant, which was Section 381 of the IPC, is now Section 306 of the BNS.

An FIR for an offence committed on or after 1 July 2024 cites the BNS, so it will show Section 306, not Section 381. An older matter keeps its IPC number, because the law that applies is the law on the date of the offence. So for a time you will see both numbers in live matters, and you need to read each one correctly.

02What Section 306 covers

Section 306 of the BNS is an aggravated form of theft. It applies where a person who is a clerk or servant, or is employed in the capacity of a clerk or servant, commits theft of property in the possession of the master or employer.

The base offence of theft is defined in Section 303 of the BNS. Section 306 raises the punishment because the thief has misused a position of trust inside the workplace or household. The relationship between the accused and the owner of the property is what makes this offence more serious.

03Key ingredients

The prosecution must prove each of these:

• theft as defined in Section 303 of the BNS, that is, dishonestly taking movable property out of the possession of another without consent;
• the accused was a clerk or servant, or employed in that capacity;
• the property stolen was in the possession of the master or employer.

If the employment relationship is not proved, the offence falls to ordinary theft under Section 303. If the person was entrusted with the property and then dishonestly kept it, the facts may instead point to criminal breach of trust, a different offence, so the exact role of the accused matters.

04Old to new: IPC 381 to BNS 306

Section 381 of the IPC, theft by a clerk or servant, is now Section 306 of the BNS. The ingredients and the seven-year ceiling are carried over.

Because the offence is carried over, decades of case law on Section 381 of the IPC still guide how Section 306 is read.

05Punishment and classification

The punishment under Section 306 is imprisonment of either description for a term which may extend to seven years, and the offender is also liable to a fine.

On classification, the offence under Section 306 is:

• Cognizable: the police can register an FIR and investigate without prior approval of a court.
• Non-bailable: bail is not a matter of right and is decided by the court.
• Triable by any Magistrate.

06What changed from the old law

For this offence, the change is mostly the number. The ingredients, the trust element, and the seven-year ceiling are carried over from Section 381 of the IPC, so older precedents still apply.

The practical point is to charge the correct section. A workplace theft by an employee usually fits Section 306, a theft from a dwelling or a vehicle fits Section 305 of the BNS, and a plain theft fits Section 303. Reading the role of the accused and the place of the theft decides which one applies.

07Where Claw fits

Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.

Employee-theft cases stand or fall on proof of the employment relationship and on how courts have read the trust element under Section 306 or the old Section 381. On Claw you can trace that reasoning with a section, party or advocate search across 9,102 courts, benches and forums, reaching Supreme Court decisions from 1950 and High Court decisions from 1990, with results in under 5 seconds from more than 30 crore judgments.

Your case documents are never fed into training Claw AI models, so client confidence is protected. Create a free Claw account to study how workplace theft has been charged and decided, or to keep watch on a live matter by party or advocate name. For a wider search of the law, see case search across Indian courts.

08Sources and further reading

• India Code (official text of the BNS, 2023): indiacode.nic.in
• PRS Legislative Research (BNS overview and IPC comparison): prsindia.org
• Section 306, BNS (bare text): devgan.in
• Claw: clawlaw.in

This explainer is general information, not legal advice. The law changes through amendments and judgments, so check the current text and take advice from counsel before you act.

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