i am new for designing please somebody help me.
i want to step down the voltage from supply (220v -250v rms) to the voltage that gives rectified voltage less than 5v so that i can connect to Arduino. here is my circuit. Am i correct ? is there another option that is cost effective?
No, you are 100% incorrect, and absolutely lethal.
Use a 5V wallwart, or some other kind of ready made power supply - under no circumstances should you mess with mains voltages unless you know exactly what you're doing.