Thank you, Raj, for your description.
So, as you wrote, “According to vedic scholars, the soul is 1/10000th the size of the tip of one’s hair. It cannot be cut, burnt or destroyed.” That means it is permanent.
That is similar to the concept of an eternal (permanent) soul in Christianity, Islam, etc. Of course, the details are different.
– As you wrote, in Vedic teachings, “Liberation is the state where one is freed from bondage and ego is given up (monistic schools) and one merges and become one with Parabrahman which is a state of unlimited joy, or the ego is purified (dualistic schools) and one exists eternally and serves God. In the monistic school individual identity is given up and one ceases to exist, in the dualistic school, the identity is maintained as an eternal servant of God.”
I was not aware of this part of your statement: “.. the soul is 1/10000th the size of the tip of one’s hair.”
– Anyway, the point is that Vedic teachings imply a soul that is permanent.
The difference in Buddhism is that there is nothing permanent that goes from life to life.
– There is an “entity” that would be even smaller than “1/10000th the size of the tip of one’s hair” created by kammic energy when a new existence is grasped. That is gandhabba in Buddha Dhamma.
– And that gandhabba is NOT permanent. If one goes from a human to animal existence, that gandhabba will change. That change happens according to Paticca Samuppada.
– The Buddha taught that suffering cannot be stopped until that process of transitioning from one gandhabba state to another is stopped. That is Nibbana.
That is of course only a summary. I don’t think I can explain any further in these exchanges. My recommendation would be to read the posts in the following link to understand how new existences arise due to one’s own actions:
“Paṭicca Samuppāda in Plain English“