Is filing of return compulsory for me?

Puneet asked:
I received a salary of Rs.2,00,000 in the year 2008-09. Further I had a PPF contribution and LIC of approx. Rs.65,000. Do I need to file incometax return. Also which incometax form will I have to use.

Answer
As per the law you DONOT need to file your IT return but I would advise you to file your return.
The law says that a person whose total income is less than Rs.150000 will not be required to file the return. And since your total income i.e. 1,35,000(200000-65000) is less than 150000, you need not file a return.

An extract from the bare act (Section 139(1) ) will clear the same
Every person

(b) being a person other than a company(or a firm], if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,

But I would advise you the same due to the benefits like return helps a lot in loans applications to bank.
You will have to use ITR1.