Acharya Prashant explains that honesty is not merely a code of conduct or a set of values taught by society, such as returning change after a purchase. He defines honesty as the singular act of knowing the truth, which begins with knowing the self. He argues that people often confuse honesty and selfishness because they rely on rote definitions and external behaviors rather than deep understanding. True honesty is the refusal to live in falsehood and the commitment to knowing one's reality. He emphasizes that intelligence is the only thing that truly belongs to an individual, and honesty is directly linked to it. Regarding self-knowledge, Acharya Prashant uses the analogy of a person covered in layers of colors and dirt after playing Holi. Just as one cannot see their true face until the layers of grime are washed away, one cannot know their true self until they remove the layers of habits, learned traits, mindsets, and worldviews acquired from the past. He points out that most people define themselves based on what others have told them or through their personal history. To truly know oneself, one must set aside these external opinions and historical narratives to look at their current state with their own intelligence and vision.