। ॥ ७४१ ॥
In plain words
If either the term 'That' or the term 'You' points directly to its implied meaning by itself, then the operation of abandoning the literal sense finds its proper place.
Close to the Sanskrit
If either the meaning of 'That' or the meaning of 'You' indicates itself indirectly, then the operation of exclusive implication (jahallakṣaṇā) becomes justified.