I have an application running on JBoss.I want to know whether there is a configuration wherein I can limit overall threads in JBoss environment.If so,where should I make the changes.
I don't think you can limit the threads with one setting. Each server component may create its own threads (e.g. JMS) so you really need to do this for each component seperately, for those that do expose this kind of settings.
You should also consider, not deploying components you don't use. This will keep the thread count low.