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A new agreement has been signed between Ras Al Khaimah and a Chinese manufacturer of aerial vehicles, which will allow for the testing of flying cars in the emirate's deserts, ultimately aiming to create a demonstration route between Abu Dhabi and Ras Al Khaimah.

On Friday, Aridge, one of Asia's largest companies specializing in flying cars, entered into a contract with Ras Al Khaimah under the supervision of the UAE General Civil Aviation Authority. The goal is to establish a so-called regulatory sandbox—a controlled environment where the aircraft can be tested and evaluated before rules for wider use are established.

This sandbox allows regulatory bodies to first develop safety standards, airspace regulations, and operational procedures. This step followed just one day after Aridge demonstrated its modular flying car, the Land Aircraft Carrier, at a reception organized by the Chinese Embassy to mark the 77th anniversary of the founding of the People's Republic of China and the 42nd anniversary of diplomatic relations between China and the UAE at the Emirates Palace in Abu Dhabi.

The event was attended by Chinese Ambassador Chen Jixin, as well as representatives from the UAE government and business community. In addition to creating the sandbox, both parties plan to develop a demonstration route connecting Abu Dhabi and Ras Al Khaimah.

This route is intended to test all necessary elements for future air mobility services between the emirates, including flight planning, airspace coordination, ground support, passenger service, and safety protocols. Currently, these two cities are separated by approximately a 90-minute drive, and if such routes transition from testing to operation, they could offer a faster way to travel between the emirates.

Within the regulatory sandbox, overseen by the Ras Al Khaimah Transport Authority (RAKTA), Aridge will conduct flight tests in desert conditions, assess the aircraft's characteristics in various operational scenarios, and refine procedures within controlled airspace. This program provides a structured environment for the company to test its technology and business model in close cooperation with relevant authorities and industry partners.

Sheikh Saud bin Sakr Al Qasimi, a member of the UAE Supreme Council and ruler of Ras Al Khaimah, presented this partnership as part of broader efforts to modernize the emirate's economy. He stated: 'The true value of technology lies in the difference it makes in people's lives,' adding that Ras Al Khaimah is leveraging innovation to strengthen its economy and status as a place to live, work, and invest.

This collaboration makes Aridge the first Chinese flying car company to enter a national regulatory sandbox in the Middle East, and establishes one of the world's first test sandboxes for personal low-altitude flights.

The Central Board of Direct Taxes (CBDT) has amended the established process for recovering tax arrears by excluding provisions related to arrest and detention. Furthermore, the CBDT has granted valuers and authorized income tax professionals an additional six-month period to complete registration under the new Income Tax Act 2025.

In a notification issued on September 17, CBDT modified Rule 225 of the Income Tax Rules 2026, which governs the recovery of tax arrears. This amendment removes a clause referencing arrest powers and deletes the phrase 'except for arrest and detention' from another provision. Several other sub-rules of Rule 225 were also deleted. These changes in Rules 2–4, including Rule 225, are effective retrospectively from April 1, 2026.

Richa Souney, Partner at Grant Thornton Bharat, noted that 'the exclusion of arrest and detention provisions from the established tax recovery rules with retrospective effect from April 1, 2026, is a significant change. In fact, tax recovery will continue through attachment and sale of assets and other recovery mechanisms, but personal arrest will no longer be part of the established recovery process under these Rules.'

She added that 'this amendment aligns Rule 225 with the changes introduced by the Finance Act 2026 and reflects a shift towards asset-based recovery measures.'

Separately, CBDT extended the registration deadline for valuers and authorized income tax professionals by six months in accordance with Rules 246 and 256. The deadline, previously set for September 30, 2026, has been extended to March 31, 2027.

The notification also replaced Form 169, the application form for valuer registration under Section 514 of the Income Tax Act 2025. The updated form requires applicants to provide personal details, the asset class for which registration is sought, educational qualifications, previous employment history, and professional experience. Valuers must also provide information on assessed assets or work performed over the preceding three years.

The form provides for registration across 11 asset classes, including immovable property, agricultural land, plantations, forests, mines and quarries, securities, machinery and equipment, jewellery, and works of art. A separate application is required for each asset class. A fee of 10,000 rupees is charged for submitting the application, although valuers already registered under the Wealth Tax Act 1957 are exempt from this fee.

CBDT also replaced Form 171, the application form for registration of an authorized income tax professional. The revised form requests details such as educational qualifications and existing registration under the Income Tax Act 1961. Applicants must confirm that they have practiced before tax authorities for at least one year.

Additionally, the notification amended Rule 176, replacing the requirement to send certain communications 'via digital signature' with sending 'through electronic communication.' These changes were announced under the Income Tax Rules (Fourth Amendment) 2026.

According to estimates by SBI Research, foreign currency deposits attracted by banks through the Foreign Currency Non-Resident (Bank) (FCNR(B)) scheme, amounting to USD 127 billion, are capable of providing additional bank lending at the level of INR 25 trillion and generating a nominal profit of approximately INR 5 trillion for banks over five years.

These deposits, placed under the preferential swap scheme, were mobilized less than three months before the Reserve Bank of India (RBI) announced the closure of the window for accepting such deposits.

SBI Research calculated that at an interest rate of 7.5 percent, these funds could generate approximately INR 1.8 trillion in annual income. After deducting expenses on deposit interest, estimated at INR 75,000 crore per year, the report shows an effective net interest margin of about INR 1 trillion annually, which amounts to INR 5 trillion over a five-year period.

The research body's report, published on Friday, notes that using a reduced and slowed credit multiplier of 2.5, these deposits could lead to additional lending of INR 25 lakh crore (trillion) and an effective yield of 7.50 percent, ensuring an increase in nominal earnings of INR 1.8 trillion per year for banks.

The study also forecasts additional interest costs of about INR 1.75 trillion and foreign exchange devaluation costs of INR 3.18 trillion, based on the assumption of a 5 percent annual depreciation of the rupee over five years.

The report emphasizes that the RBI's special dollar-rupee swap program was designed to hedge the currency risk associated with these deposits. Consequently, subsequent rupee devaluation should not be considered an additional specific cost for FCNR (B) beyond hedging costs.

SBI Research stated that after hedging the currency risk on the principal amount through this mechanism, further rupee devaluation does not incur additional contractual losses on the principal amount for either party (banks or RBI).

Total hedging costs for USD 127 billion were estimated at nearly USD 15 billion. The calculation is based on an average annual hedging cost of 3 percent for the dollar against the rupee and dividing the deposits into maturity intervals—one, three, and five years.

The report also indicates that investing USD 100 billion from these funds in globally invested assets with a 4 percent return over five years could yield about USD 20 billion. After deducting estimated hedging costs of USD 15 billion, a surplus of about USD 5 billion, or INR 50,000 crore, would go to the central bank's balance sheet.

Thus, the report states that the total profit for banks will be a nominal INR 5 trillion, and for the RBI—INR 0.5 trillion. Furthermore, the large inflow of liquidity from this scheme over time may be absorbed by holiday season demand, credit distribution channels, new loan approvals, and government expenditures such as advance taxes and goods and services tax.