Your last question, "How is the sould degraded (by lust, anger and greed) when it is transcendental to the body? Doesn't that imply that the sould has changed?" No. The soul never changes, but due to his tinyness he may become forgetful of his relationship with Krsna. The spiritual quality of the spiritual spark has not changed but he has forgotten his spiritual nature, bewildered by the imperfect desire to become equal or greater than Krsna.
Your second question, how the impersonalists mistake the difference between the soul and the Supersoul-The mistake is due to their obstinacy. The impersonalists masquerade as Vedantists, but actually they are defying Vedanta. In the Vedanta it is clearly said, the Original Source of all being; in the Upanisads it is clearly said that the Supreme is the Supreme being of all living beings. So all the Vedas affirm it vehemently that the Supersoul and the soul are two different identities, although qualitatively one. But the impersonalists they accept Vedas as authority, but they go against the verdict of the Vedas. Lord Caitanya has depicted this impersonalist class of men as more dangerous than the Buddhists. The Buddhists plainly declare that they do not accept the authority of the Vedas, but the impersonalists masquerade themselves as followers of Vedas, but actually they are hidden Buddhists. The idea is, if a person is actually fast asleep, it is easier to awake him but if a person pretends to be sleeping but actually is awake, then it is very difficult to wake him up. So from all Sastric point of view, the living entity and the Supreme Lord, or the Supreme Living Entity are always simultaneously different and one. One in quality, and different in quantity. this simple thing is understandable by any common man, but these impersonalists, they will simply invent jugglery of words to mislead innocent people. Therefore Lord Caitanya has warned not to associate with these impersonalist mayavadis because they will spoil one's life by diverting one from devotional service.
It is very difficult to bring to reason the obstinate impersonalists. For example, Prahlada Maharaja, such a great authority, could not convert his father to devotional service, who preferred death, and still did not agree to accept that God is different from him. So better to avoid the impersonalists as far as possible.
(Letter to Rupanuga-------Hawaii, 1969).
Krishna Tiwari: But how we know about soul?
Prabhupāda: We know from the Vedic knowledge.
(Room conversation---------New York, 1973).
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