Acharya Prashant clarifies that liberation, or mukti, is not a concern for future births but is the freedom from internal compulsions and bondages experienced in the present life. He explains that the one who feels bound is herself an illusion born of ignorance. By adopting fake identities, individuals feel obliged to suffer, but true liberation comes from realizing that these identities and their associated compulsions are not real. He emphasizes that freedom is found by acknowledging current suffering rather than remaining sedated by false happiness.