Wow after few searches i found the solution so, i didn't get that much headache at this time. This is how i changed my contacts page form in magento.
Step 1:
Change the contact form located at:
/app/design/frontend/default/your_template/template/contacts/form.phtml
Step 2:
Once it is ready create a new email template to get all the form data and post. You can design the template or leave as simple as it is. For this goto
admin -> System -> Transactional Emails -> Add New Template
Then from Template drop down select contact form and load the template. Then you can edit as you like and save the form with some name.
Step 3:
Now you need to select the newly created email template to use for sending data captured from contact us page form. For this goto:
admin -> System -> Configuration -> Contacts
Now under email options select the new contact form that you just created and save it.
That's it. You are all done.
Also, If you want to add static block on the form you can do so by following steps:
Step 1:
Create a static block.
Step 2:
Goto Contacts form see above previous step 1 for file location. Choose the location you want to display the block and paste below code:
<?php $this->getLayout()->createBlock('cms/block')->setBlockId('your_cms_static_block_identifier')->toHtml() ?>
how can i resolve this issue