Tax, interest, and penalties are a first charge on a taxpayer's property, taking priority over other claims (except IBC 2016).

Any amount payable by a taxable person or other person for tax, interest, or penalty to the Government constitutes a first charge on that person's property, taking priority over other claims under existing laws, except as otherwise provided by the Insolvency and Bankruptcy Code, 2016. This provision fixes government tax liabilities as a primary lien on the taxpayer's assets until satisfied.

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