Sections 501 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 501 to 504 of the Income-tax Act, 2025 answer a practical question: how does a notice, summons or order under the Act reach the person it is meant for, and when is it treated as properly issued? They cover the modes of service, the authentication of a notice, and who is served when a Hindu family has partitioned, a firm has dissolved or a business has been discontinued. If a notice has reached you and you doubt how it was served, legal dispute resolution support can review it.
This explanation is as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026. Under section 1(3) the Act came into force on the 1st April, 2026, save as otherwise provided. Later amendments, rules and notifications should be checked.
Under section 501 a notice, summons, requisition, order or other communication may be served by post or approved courier, in the manner of service of summons under the Code of Civil Procedure, 1908, as an electronic record, or by any other prescribed means. Under section 502 a notice is deemed authenticated if the name and office of a designated income-tax authority is printed, stamped or written on it. Sections 503 and 504 say whom to serve after a partition, a dissolution or a discontinuance.
Section 501: service of notice, generally
Sub-section (1): the four modes
The service of a notice, or summon, or requisition, or order, or any other communication under the Act (called "communication") may be made by delivering or transmitting a copy to the person named:
- (a) by post or by such courier services as may be approved by the Board;
- (b) in such manner as provided under the Code of Civil Procedure, 1908 (5 of 1908) for the purposes of service of summons;
- (c) in the form of any electronic record as provided in Chapter IV of the Information Technology Act, 2000 (21 of 2000); or
- (d) by any other means of transmission of documents, as may be prescribed.
The two other Acts are named as printed; check them for their own conditions. The detail of the "other means" in clause (d) is left to the Income-tax Rules, 2026, and what has been approved or prescribed is not in the text consulted.
Sub-section (2): addresses
The Board may make rules providing for the addresses, including the address for electronic mail or electronic mail message, to which a communication may be delivered or transmitted to the person named.
Sub-section (3): electronic mail defined
"Electronic mail" and "electronic mail message" mean a message or information created, transmitted or received on a computer, computer system, computer resource or communication device, including attachments in text, image, audio, video and any other electronic record transmitted with the message.
| Clause of section 501(1) | Mode |
|---|---|
| (a) | Post, or courier approved by the Board |
| (b) | As provided in the Code of Civil Procedure, 1908 for service of summons |
| (c) | Electronic record under Chapter IV of the Information Technology Act, 2000 |
| (d) | Any other means of transmission of documents, as prescribed |
Section 502: authentication of notices and other documents
Sub-section (1): signing and issue
Where the Act requires a notice or other document to be issued by an income-tax authority, it shall be signed and issued in paper form or communicated in electronic form by that authority as per such procedure as may be prescribed.
Sub-section (2): deemed authentication
Every notice or other document to be issued, served or given under the Act by an income-tax authority is deemed to be authenticated if the name and office of a designated income-tax authority is printed, stamped or otherwise written on it.
Sub-section (3): who is a designated authority
"Designated income-tax authority" means any income-tax authority authorised by the Board to issue, serve or give the notice or document after authentication in the manner of sub-section (2).
Read together, sub-section (2) deems a document authenticated by the presence of the name and office of the designated authority, and sub-section (3) says who that authority is. The section does not say that a missing signature on its own invalidates a notice; whether a defect affects a proceeding is dealt with by the Act's separate provision on circumstances in which returns, assessments and notices are not invalid.
Section 503: when a family is disrupted or a firm is dissolved
Sub-section (1): Hindu family after total partition
After a finding of total partition has been recorded by the Assessing Officer under section 315 for a Hindu family, notices in respect of the income of the family are served on the person who was its last manager, or, if that person is dead, on all adults who were members of the family immediately before the partition.
Sub-section (2): firm or association dissolved
Where a firm or other association of persons is dissolved, notices for its income may be served on any person who was a partner (not being a minor) or member of the association immediately before its dissolution.
Note the different wording: sub-section (1) says notices "shall be served" on the last manager or adult members, while sub-section (2) says they "may be served" on any such partner or member.
Section 504: discontinued business
Where an assessment is to be made under section 320, the Assessing Officer may serve a notice on:
- (a) the person whose income is to be assessed;
- (b) a person who was a member of a firm or association of persons at the time of its discontinuance, in the case of a firm or association; or
- (c) the principal officer, in the case of a company.
The notice may contain all or any of the requirements that may be included in a notice under section 268(1), and the provisions of the Act apply, so far as may be, as if it were a notice issued under that section.
| Section | Situation | Who is served |
|---|---|---|
| 503(1) | Hindu family after total partition found under section 315 | Last manager; if dead, all adults who were members just before the partition |
| 503(2) | Firm or association dissolved | Any person who was a partner (not a minor) or member just before dissolution |
| 504 | Assessment under section 320 on discontinued business | The person whose income is assessed; a member of the firm or association at discontinuance; the principal officer of a company |
A worked example (names assumed)
The Sharma family, a Hindu undivided family, is found by the Assessing Officer, under section 315, to have undergone a total partition. Its last manager was Mr. Gopal, who has since died; the adult members just before the partition were Mrs. Meera, Mr. Rohit and Mr. Sameer. (All names and facts are assumed.)
- For notices on the income of the family, section 503(1) requires service on Mr. Gopal, as the last manager. Since he is dead, the notice goes to all adults who were members immediately before the partition: Mrs. Meera, Mr. Rohit and Mr. Sameer.
- A separate firm, Lotus Associates, is dissolved. Under section 503(2) a notice for the firm's income may be served on any person who was a partner, not being a minor, immediately before the dissolution.
- Each notice may be sent by post or approved courier, by a mode under the Code of Civil Procedure, 1908, as an electronic record, or by a prescribed means (section 501(1)), and is deemed authenticated if the name and office of a designated income-tax authority appears on it (section 502(2)).
Need help with a notice?
Whether a notice was served on the right person, in a permitted mode and with proper authentication can matter to your reply. Legal dispute resolution support is available to read the notice and the record of service with you.
Key takeaways
- A communication under the Act may be served by post or approved courier, in the manner of the Code of Civil Procedure, 1908, as an electronic record, or by prescribed means (section 501(1)).
- The Board may make rules on addresses, including electronic mail addresses (section 501(2)).
- A notice is signed and issued in paper form or communicated electronically as prescribed (section 502(1)).
- Printing, stamping or writing the name and office of a designated income-tax authority deems the notice authenticated (section 502(2)).
- After a total partition, serve the last manager or, if dead, all adult members (section 503(1)).
- A dissolved firm or association may be served through a partner who was not a minor, or a member (section 503(2)).
- For discontinued business, section 504 lists whom the Assessing Officer may serve.
Read next
- Sections 499 and 500: void transfers and provisional attachment
- Sections 505 to 507: statements by liaison offices, Indian concerns and film producers
- Section 289: notice of demand
- Chapter XXIII guide: miscellaneous provisions
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.