Acharya Prashant clarifies the distinction between Atma (the Soul) and Jivatma (the individual ego-self) based on the Bhagavad Gita. He explains that Shri Krishna describes the Atma as eternal, unborn, and unchanging—it neither takes birth nor dies. In contrast, the Jivatma is the ego or the mind that identifies with the body and desires. When Shri Krishna speaks of discarding old clothes for new ones, he is referring to the Jivatma, not the Atma. The speaker emphasizes that the Atma is impersonal and universal, whereas the Jivatma is the false identity created by the ego.