You start off on the wrong foot. First step is, it is not whether you are taxable or not.

The first step is: all income must be declared.
Open an income tax file and get your unique file number first.
Declaration is to fill up the B/BE form, and find out the final figure after deductions and rebates.
From there, you will know whether your income is taxable or not.

Remember to start from the correct footing. All income must be declared, even if you earn RM1 in that year (or 8.3 cents/month).

If you want monthly prepaid deductions, that is PCB (potongan cukai berjadual). Submit your income tax number to your HR/finance and inform them you want to include in PCB.

At the beginning of next year, AFTER all your declaration, if there is extra (or non-taxable), you can request from LHDN to refund you. If insufficient, then you need to top up payment.

No such thing as first year don't need declare. Or just work 2 weeks in that year don't need declare. Even if you start work part-time at McD after PMR/SPM, still need to declare after request tax file (but just not taxable).

Declare is always to assess the previous year. i.e.
In year 2013 (now), we will declare for assessment year 2012 (1st Jan 2012 until 31st Dec 2012 all sorts of income).
2012 declare YA 2011
2011 declare YA 2010
...

In your case, I assume:
2011 - you did not declare for YA2010
2012 - declare YA2011, and claim some money. Then LHDN penalty you for YA2010 non-submission.

Just call up LHDN, ask them which branch is your tax file. Ask them to check and you make payment by cash/cheque. Not sure credit card though.
Since you are still early in taxation world, better to sort it all out and pay it.
Rather than you wait longer, you get more and more salary, and there will be more things for LHDN do dig into your 7 years history in future.

Remember, two things can't escape in life: death and taxes.

Yes you need to declare even if you know that you do not need to pay any tax.

I noticed alot of people are also having this thinking - what for i declare when i don't have to pay or the government is not paying me.