In Hindu theology, Paramatman or Paramātmā is the Absolute Atman or Supreme Soul or Spirit (also known as Supersoul or Oversoul) in the Vedanta and Yoga philosophies of India. Paramatman is the “Primordial Self” or the “Self Beyond” who is spiritually practically identical with the Absolute, identical with Brahman. Selflessness is the attribute of Paramatman, where all personality/individuality vanishes.
The word stem paramātma (परमात्मन्, pronounced [pərəmaːtmən], its nominative singular being paramātmā — परमात्मा, pronounced [pərəmaːtmaː]) is formed from two words, parama, meaning "supreme" or "highest", and ātma, which means individual spirit or soul or self.
The word “atman” generally denotes the Individual Self, but by the word “Paramatman” which word also expresses Boundless Life, Boundless Consciousness, Boundless Substance in Boundless Space, is meant the Atman of all atmans or the Supreme Self or the Universal Self. The word “Atman” which literally means non-darkness or light, is Brahman the subtlest indestructible Divine existence. The word “Paramatman” refers to the Creator all.
In Jainism, each atman or individual self is a potential Paramatman or God, both are essentially the same. It remains as atman only because of its binding "karmic" limitations, until such time as those limitations are removed. As Paramatman, the atman represents the ultimate point of spiritual evolution.
Even though Jain mysticism centers around Atman and Paramatman because it believes in the existence of soul, in Jainism, which accepts neither Vedic authority nor Monism, all enlightened souls are referred to as Paramatman and regarded as gods. Jainism honours the soul of each man as its own eternally distinct savior. Since the Paramatman of Jainism is unable to create and govern the world, there is no place of God as a creator and bestower of fortune.