In the classless society, Vedas established the Four colors or qualities, "Varnas" according to each person's physical and mental capacity, capability, ambition and desires. Thus the classes of "Educators, Warriors, Merchants and Servants" as social classes of equal levels, a vertical division of the society, was established to perform all the duties. The activities of the communities were organized with a division of labor in an efficient way. As the Vedic rituals became very elaborate and complicated, the priests had an upper hand in the society in the maintenance of Dharma (the rule of law). They could command a leadership over the people and their kings. The kings naturally had the power and physical leadership of the people. Often the priests were considered to be at a lower level in the ladder. This caused a competition among them in the name of the religion, God and the society. This is similar to the social histories of many other regions of the world, where every group wanted to show their superiority to another group and rule over them.

The "Varna Dharma" were originally instituted according to one's ability, ambition and knowledge and as inborn (genetic) qualities, very much like in any educational or social institution. The Vedic teachings describe the three "Gunas" or personal qualities of people, namely "Satvika", "Rajasika" and "Tamasika". Different Varna will have different combination of Gunas. Purusha Sukta in Rigveda describes the four Varnas which should be taken as to mean the "Gunas" or individual characters and not families of persons. Some people say there were only three Varnas. All are eligible to study the Vedas. "Janmanaa Jayate' Sudrah: Samskaaraah Dwija Uchyathe'. Veda Pathanthu Vipraaha Brahma Jñanamthu Brahmanaaha." All are born as Sudras. After they dedicate their life to the teachings of the Vedas and gain the wisdom and knowledge of "Brahman", they become "Brahmana". This is just to show that all these qualities work together as essential parts or limbs of the society. Perhaps the Gunas and the Varnas belong to the "Soul" as a person's desire and not to the body by his birth. However, the greatest misfortune for the Hindu society is the later changes that occurred about "Varna Dharma".