Nokia said it would continue to offer relevant innovations to the 18-24-year-old consumers at affordable price points to maintain momentum.

The income tax department had in March issued the massive tax demand on the Indian unit of the mobile phone maker.

To be priced around $99 (approx Rs 5,300), Asha 501 is a dual-SIM 2G phone with a three-inch touch screen and a design similar to Lumia.

Asha 501 is the first device to run on the new Asha platform, which Nokia claims is designed to make experience faster.