Having previously declared that transmigratory existence arises due to lack of proper discrimination between spirit and matter. Lord Krishna now instructs the difference between the atma or immortal soul and prakriti the material substratum pervading physical existence, which by knowing has the potency to terminate samsara or the perpetual cycle of birth and death. He reveals that one who sees the Supreme Lord in His manifestation of paramatma the Supreme Soul existing equally within all jivas or embodied beings and everything inanimate as the brahman or spiritual substratum pervading all existence. Such a person understands that no jiva actually perishes when the body perishes as every atma is eternal. Such an enlightened seeing equally perfectly perceives the actual truth of reality which others are incapable of recognising.

Lord Krishna confirms with the words pasyati meaning perceives or discriminates that one who realises that paramatma or the Supreme Soul existing equally within all jivas or embodied beings is the ksetrajna or knower of the sphere of activity and that it is distinctly distinguished from prakriti the material substratum pervading physical existence which manifests as unlimited forms such as demigod, human, animal, etc. In other words recognising the Supreme Lord as the same omnipresent eternal consciousness localised within each and every living entity and realising that it is singular. Also distinguishing the fact that while all physical bodies decay and perish; the atma or individual immortal soul does not ever decay or perish because it has an eternal, transcendental nature. This is confirmed in the Vishnu Purana: VI.VII.LVIII beginning pradhanadi viseshantam meaning: the undecaying within the decaying. One who correctly comprehends the atma in this manner properly perceives reality. But one who thinks that the atma is subject to birth and death and that it is modifiable and variable like the forms of living entities which are always changing; then such a person will always remained confined in samsara or the perpetual cycle of birth and death in material existence.

Having clarified the reality that all jivas or embodied beings entering into material existence is caused by the combination of spirit and matter. Now Lord Krishna confirms that one who sees the Supreme Lord as paramatma the Supreme Soul situated equally sarvesu bhutesu within all living entities within all species of life and who can perceive the Supreme Lord existing through the brahman or spiritual substratum pervading all existence, also in perishable matter. Such a person is one who actually perceives reality.