Emotions do not affect our soul, emotions are our soul.

Actions which stem from emotions are reactions. Reactions do not affect our soul either, they are the expression of it. Thought, or self-referential thought to be more precise, could be said to be an expression of it also.

Ego and soul are two sides of the same coin. Both are bondage, both are two be dissolved on the way to liberation.

Some people call all of it ego. Some people call the thinker of thoughts ego, and the feeler of emotions soul. That’s what Osho’s “the death of the ego is the birth of the soul” refers to.

In reality, it makes no difference. Ego and soul are so tightly interconnected that it might as well be considered one thing. It is not really possible to separate emotion from self-referential thought and vice versa.

If you make this distinction, then the death of the ego is self-realization, and the death of the soul is enlightenment. If you don’t, then self-realization is when the core of the ego is gone, and enlightenment is when all of it is gone. These descriptions are equivalent.