Section 40(a)(i): Expenses claimed by the taxpayer can be disallowed if TDS is not deducted. Section 271C: A penalty equal to the amount of TDS/TCS not deducted or collected can be imposed. Section 271H: A penalty of ₹10,000 to ₹1 lakh can be imposed for failure to collect TCS. Section 201(1A): Interest at the rate of 1% to 1.5% per month can be charged on the amount of TDS/TCS not deducted or collected. Section 206C(7): Interest at the rate of 1% to 1.5% per month can be charged on the amount of TCS not collected. Section 276B: Failure to deduct TDS can lead to prosecution, which may result in imprisonment for a term of 3 months to 7 years and a fine.