Income payable net of tax requires payer-borne tax to be grossed up so the deduction leaves the agreed net payment intact. Where an agreement or arrangement makes the payer responsible for tax on a payment (excluding subsection (1A) of section 192), the payer must gross up the payment to an amount that, after deduction of tax at applicable rates for the financial year, equals the net amount agreed, ensuring deduction at source is calculated on the inflated sum.