The symbolism of Lord Dakshinamurti

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Source : Arsha Vidya Gurukulam satsangs (the explanation below is provided by perhaps the most eminent Vedantin alive today - Swami Dayananda Saraswati)

Lord Dakshinamurti is shown seated under a banyan tree, surrounded by his disciples. The Lord has four hands. In his lower right hand, he shows the cinmÍdra and also holds a japa-mala. In his upper right hand, the Lord is holding a damaru (a small drum) and a pasa, a noose. In his upper left hand, there is fire and in the lower left hand, a book. The sun and the moon adorn the crown of the Lord. We also see in his matted locks the maiden figure representing the Ganga. In his right ear, the Lord wears a man's earring, and in his left ear, a woman's earring. He is adorned with necklaces and armlets, a belt, and bracelets. His left foot is resting on his right thigh (in the posture called Virasana) and his right foot presses a dwarf-like figure called Apasmara.

The Lord supports this universe made of the five basic elements: space, air, fire, water, and earth. The drum symbolizes the element space, since it produces sound, and the flying matted locks held in place by a bandana, symbolize the air. The element fire is shown in one hand, the Ganga flowing from the Lord's head stands for water. The entire form of the body of the Lord is made of the element earth. The sun represents all luminaries, and the moon, all planets. The damaru, the small drum (which stands for the element space), also symbolizes creation, whereas fire stands for destruction, including the destruction of ignorance. The various ornaments represent the glories of the Lord.

The banyan tree under which Lord Dakshinamurti is sitting represents samsara which has no beginning. However, samsara has an end. Being mithya, its reality is in Brahman, the root and therefore, Lord Dakshinamurti is shown as seated at the root of the tree. The cinmÍdra is a symbol for the knowledge of the identity of the individual and the Lord, which puts and end to samsara. The book in the lower left hand is the Veda. The japa-mala, is a symbol for all religious disciplines. The bull, on which the Lord rides, stands for dharma, justice, and also maya, which the Lord wields. His name is Nandi (meaning joyful) or Nandikesvara (the Lord of Joy). Lord Siva here is Ardhanarishvara, half male and half female, representing purusha and prakriti, the cause of creation. This is symbolized in Lord Dakshinamurti by a male earring in the right ear and a female earring in the left. The figure held in check under the right foot of Lord Dakshinamurti is called Apasmara, representing all obstacles to our pursuits.