“The living entities, who are residents of the spiritual as well as the material expansions, are His marginal energy (tatastha-shakti), and they are at liberty to live in either of the energies, external or internal. Those who live within the spiritual expansion of the Lord are called liberated souls, whereas the residents of the external expansion are called the conditioned souls.” (Shrila Prabhupada, Shrimad Bhagavatam, 2.6.17 Purport)
The living entity is described as a jiva. The functional unit of life is spirit. Long before modern science discovered it, the Vedas described atomic theory. Anu and Paramanu. Get down to the lowest level and you have a basic building block of life.
The living spirit, chetana, is encased in a covering lacking a spiritual component. That is to say a jiva resides within an ever changing-body. Everything is originally sourced in…
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