Hi,
Finance Bill, 2022 has amended Section 2 of the Income-tax Act, 1961 to include the definition of Virtual Digital Asset. This definition has been reproduced below for ease of your reference:
"(a) any information or code or number or token (not being Indian currency or foreign currency), generated through cryptographic means or otherwise, by whatever name called, providing a digital representation of value exchanged with or without consideration, with the promise or representation of having inherent value, or functions as a store of value or a unit of account including its use in any financial transaction or investment, but not limited to investment scheme; and can be transferred, stored or traded electronically;
(b) a non-fungible token or any other token of similar nature, by whatever name called;
(c) any other digital asset, as the Central Government may, by notification in the Official Gazette specify: Provided that the Central Government may, by notification in the Official Gazette, exclude any digital asset from the definition of virtual digital asset subject to such conditions as may be specified therein."
Explanation to the section defines "non-fungible tokens", "curreny", "Indian currency" and "Foreign Currency" for the purposes of this section.
From the above definition it is amply clear that presently, only crypto currencies come within the ambit of virtual digital assets and no reference has been made to any other class of assets.
Therefore, answering your question, the software being purchased will not be covered under the definition of virtual digital asset. Furthermore, there are explanation 3 to section 9(1)(vi) of the Income-tax Act has already provided a definition of computer software.
Best regards,
Megha