SharePoint comes with a out-of-the-box Issue Tracking list template. A sample Issue Tracker list is shown below:
Here is a simple task to be accomplished in SharePoint. As soon as a new request is assigned to a User, an email should be sent to the user intimating about the task.
You try to look for email setting under List Settings -> Advanced Settings:
But the Email setting for notification is missing in this screen. This behavior is by design. The Email Notification is relied to Outgoing E-Mail settings in Central Administration.
To fix this, you need to launch Central Administration, go to System Settings and select Configure outgoing e-mail under the Email and Text Messages (SMS) section. This will show the below screen:
Based on your environment setting, enter the 3 values in the above screen. Click OK to save your settings.
Once done, go back to your Issue Tracking list and navigate to its List Settings -> Advance Settings option. You will now find the Email Notification setting here.
Enable the email notification option and save the details. Next time, when you create a new Issue, it will send the email to the respective Assigned To user.
As shown above, while creating a new Issue, SharePoint will provide you notification that this List is email enabled.