Taxman's Trap: A Harsh Lesson

Aamir, a salaried employee, failed to deduct TDS on rent received from his tenant, who is a non-resident foreigner. The tenant pays Rs 2 lakhs annually as rent. However, Aamir does not deposit TDS, and the Income Tax Department discovers this after a random audit. What is the legal remedy available to the Department in this scenario?

1. Imposition of penalty under section 221(1) of the Income-tax Act, 1961, for failure to pay TDS? 2. Prosecution under section 276B of the Income-tax Act, 1961, for failure to deduct/double pay TDS? 3. Imposition of interest under section 201(1A) of the Income-tax Act, 1961, for failure to deduct/double pay TDS? Which one is applicable, and why?