A Non-Deliverable forward contract - Definition / Legal Terminology - Income Tax

Explanation.(ii) - For the purpose of rule 21AK(1) Income-tax Rules 1962 , A Non-Deliverable forward contract shall mean- a contract for the difference between an exchange rate agreed before and the actual spot rate at maturity, with the spot rate being taken as the domestic rate or; a market determined rate and such contract being settled with a single payment in a foreign currency;