Submission of I Tax Return required or not?

yes you are right my friend. this year also in a press release it has been announced. this exemption is applicable to those class of taxpayers who have:-
1. Reported their PAN No. to their Employer.
2. Reported their Interest Income to their employer and the employer has adequately deducted the Tax thereon
3. Received Form 16 from their employer which clearly states the Total Income earned during the year, the PAN No., the TDS deducted and the deposited with the Central Govt.
4. Received Salary from not more than 1 Employer
5. Have no claim for Refund of Income Tax for the TDS deducted

Hi friends. Let me add some more. We all know that as per notification issued on 23rd June 2011, the follwing salaried Categeory of Employees are exempted for Filing Income Tax Returns.
Salaried Employee whose Total Income for the Financial Year is less than Rs. 5 Lakhs from the salaried Income & their disclosed Interest Income form Savings Bank Interest (Savings Bank Interest up to Rs. 10,000) only, if the Employer has issued Valid Form 16 (Based on Valid PAN) after TDS deduction from the said incomes by employer.
But please note the followings:
1. If an Employee has Housing Loan or Interest Income from FIXED DEPOSITS (FD’s) or Post Office Interest or Interest Income from NSC or KVP (Even If it is Nominal Amount), they have to file their Tax Returns.
2. If a Salaried Employee has more than One Form 16 or have additional Tax Liability or Refund (Excess Tax Paid or TDS deducted), such Salaried class have to file their Income Tax Returns.
3. An Employee who has not received Form 16 from Employer (Where Tax Returns are filed based on the pay slips as there is a TDS deduction by the Employer), Tax Returns need to be filed.
It has been exempted only for specified category of the population for furnishing their return of Income and the TDS is withheld will not be refunded unless they have a specific claim (For non-furnishing of Tax Proofs to the Employer) in their Return of Income filed.

Friend somenath,
I have a house building loan. Monthly Installment repayment Rs. 40000/-( principal and interest)during the F.Y. and deduct this amount as per rules.That case RETURN SUBMISSION REQUIRE OR NOT?

The concerned notification is produced below.
NOTIFICATION NO. 36/2011 [F. NO. 142/09/2011 (TPL)], DATED 23-6-2011
In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, namely :—
Class of Persons
1. An Individual whose total income for the relevant assessment year does not exceedfive lakh rupees and consists of only income chargeable to income-tax under the following head,—
“Salaries”;
“Income from other sources”, by way of interest from a savings account in a bank, not exceeding ten thousand rupees. Conditions
2. The individual referred to in Para 1,—
(i) has reported to his employer his Permanent Account Number (PAN);
(ii) has reported to his employer, the incomes mentioned in sub-para of para 1 and the employer has deducted the tax thereon;
has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;
has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;
has no claim of refund of taxes due to him for the income of the assessment year; and (vi) has received salary from only one employer for the assessment year.
3. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.
4. This notification shall come into force from the date of its publication in the Official Gazette.

I Tax return submission is require for this case ?

No such clear direction is found in this regard but I think it will be safe for you to submit the return. However there is no bar to submit the same and its easy now a days through E-filing.
For more information you may visit this link where it is clearly stated that the return submission is required for the persons having exemption of House Loan Interest.
http://www.simpletaxindia.net/2012/02/e … iling.html