Glossary
Gross-up
The employer practice of raising an expat's gross pay so intended net survives tax — common in tax-equalised assignments, sheltered under Income-tax Act 2025 Schedule III S.No. 10.
Gross-up calculations back-solve gross salary from a target net figure, iterating because the tax due itself depends on the grossed-up amount. It is standard on assignments where the employer, not the assignee, bears the India tax cost.
Under the Income-tax Act 2025, the gross-up shelter that used to sit at old §10(10CC) is now at Schedule III, S.No. 10 — the mechanics are unchanged, only the citation moved.
Why it matters now: payroll teams citing the old §10(10CC) section number in policy documents or system configs need to update the reference to avoid an audit flag.