Is there any way to prevent intra wallet transaction fees? I heard about it somewhere, but no where found a complete step by step solution.

I've heard that for addresses in the same wallet, the transaction fees can be avoided. Is it a rumor ?

If no, then please help on how to attain it.

By wallet, I mean to say the wallet that is being used by bitcoind/litecoind or bitcoin-qt/litecoin-qt on a machine. (they usually use the wallet.dat)
A traditional Bitcoin wallet contains a bunch of private keys and a bunch of accounts. Each private key has a corresponding Bitcoin address.

For each private key that the wallet has issued, some account is associated with that key. This serves only one purpose -- it determine which account gets its balance raised when funds are received at that address.

Intra-wallet transfers require no transaction and thus pay no fee. I can switch from 10 Bitcoins in account "Jeff" and 0 in account "Judy" to 0 in "Jeff" and 10 in "Judy" just by swapping a 0 and a 10 inside the wallet. The Bitcoins remain at the same address, they are just credited to a different account.