Australia coach Mickey Arthur said on Monday he felt gutted after telling four players including Watson they had been stood down for selection for Thursday's third Test.
Test quick James Pattinson and squad members Usman Khawaja and Mitchell Johnson have also had a line put through their names for the third match of the four-Test series in India where Australia are trailing two-nil.
And the reason is they didn't meet a deadline of Saturday night to do their homework by making a presentation to the coach on how the team could improve following last week's loss in the second Test in Hyderabad.
Watson was travelling home to Sydney on Tuesday morning AEDT to attend the birth of his first child and skipper Michael Clarke says he's hopeful Watson will be available for the fourth Test in Delhi starting on March 22.
But Watson, 31, says he's been harshly treated and his playing future is up in the air.
"I am going to spend the next few weeks with my family and weigh up my options as to exactly which direction I want to go," the two-time Allan Border Medallist told reporters at the team's hotel in Mohali.
"There are a lot more important things in life. I do love playing cricket and that passion is still there and I feel I am in the prime years of my cricket career.
"But in the end I have got to live with this. That is the decision they have made and at this point in time I am at a stage where I have to weigh up my future with what I want to do with my cricket in general to be honest.
"Any time you're suspended for a Test match unless you do something unbelievably wrong, and obviously everyone knows what those rules are . . . I think it is very harsh.
"Also overnight, things have changed and (wife) Lee wasn't going to tell me things had changed because she knew how much it meant to me to be able to play this Test match.
"It was due in a couple of weeks but it's looking like things have sped up a little bit."