for the Atman which is of the nature of consciousness
वास्यादिकम् इवvāsyādikam iva
just as chisel etc
तक्ष्णःtakṣṇaḥ
for the carpenter
तेन एवtena eva
for that reason
अयम् आत्माayam ātmā
this Atman
असङ्गः भवतिasaṅgaḥ bhavati
is unattached
Translation
This subtle body is the tool for all activities for the Atman – which, in fact, is of the nature of pure consciousness – just as chisel etc., in the case of a carpenter. Hence this Atman is unattached.
Annotation
Atman appears to have all actions only when associated with the limiting adjunct, which is the case in the waking and dream states. This adjunct (the subtle body) is absent in the deep sleep. It shows that the activity attributed to Atman depends on the adjunct. Atman by itself is unattached (Jagadguru).