Paypal is extremely limited in India. Also, Paypal offers buyer protection only for physical goods... no protection for digital goods and downloads.
Finally, you cannot use existing funds in Paypal to make purchases or transfer to another Paypal account (thanks to RBI) and have to link either a debit or credit card from which funds will be drawn... in which case you can might as well use the card and go with a chargeback as that's more reliable than Paypal.
PS - Paypal will conduct their own investigation and decide on whether to return funds or not. Also, you have to raise a complaint within 45 days of purchase/transfer of funds. No such limitations with credit cards, immediate chargeback will be pursued in case of fraud and the time limit is a generous 6 months to pursue a chargeback.