Hi, my company announced me an Apple Watch as gift and they asked me to purchase it and they will reimburse the cost. While reimbursing, I was deducted with a TDS. My understanding is that this should be considered as an out of pocket expense with approval from company and there is no TDS and they need to reimburse the entire amount. Am I right here?
If the company announces a gift, it is not taxable if the value is up to ₹5,000 in a financial year.
In your case, if the value of the watch exceeds ₹5,000 it is a taxable component of your salary income by the employer and hence TDS is deductible.