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The concept of combining computers, sensors, networks to control and monitor devices began in the previous century. Nowadays, the convergence between current market trend and emerging key technologies is guiding human beings into the new era of the Internet of Things. Internet of Things can be defined as integration of physical objects with controllers, sensors and actuators with the internet for the desired output. There are various technologies and applications designed and developed in the field of smart city for making our life easy. Despite the potential notable consequences, there are lot of possible challenges in the field of standards, interoperability, security, privacy, ethical issues, legal issues and trust. All these challenges need to be addressed by minimizing the risk and maximizing the benefits.