Moksha is negation of this wrong conclusion that “I am a body” and knowing one’s true nature as Atman.
Let first understand why the need of “moksha” is felt ?
When one was a newborn child out of a mother’s womb, does he was aware of this bondage, Moksha, birth and death ? No he was not aware of it. When mind started developing than he learned that he is Hindu, he is in bondage, he is born and he will die. The more one learns belief’s about this world, more one desire to liberate.
How will Moksha happen ?
Vedanta philosophy says there are three states that a human experiences
Waking (Jagrat)– This current state when he is awake, he experience this world and himself as body.
Dream (Swapan)– When he creates a dream world and wander in it by thinking himself as a body.
Deep Sleep ( Shusphati ) – When there is no world and no body, there is no senses and no mind.
According to Vedanta, this deep sleep state ( when during sleep, there are no dreams ) is the experience of Atman. That deep sleep is the state when senses and mind are no more felt or seen.
Dream is a manifestation of Atman, where it act as a body and think dream world as real. But when one wakes up, he figures out that it was not real.
Vedanta says Waking and Dream both are same. Waking is also a manifestation of Atman, that I am a body, this world is real and I have to achieve something.
Knowing this waking world and this body as false, one can realize his true nature the Atman (self)