In Google help written, Its better to have maximum 100 links in each sitemap.
So does it mean that more links on sitemaps will not be indexed?
What does it exactly mean?
Can i have 500 links in a sitemap and google indexes them?

I remember the days when everyone on this forum could speak English.

It would be more useful if you could provide a link where Google says that you shouldn’t have more than 100 links in a sitemap.

What I have personally read from their site is that if you have a lot of links on your sitemap page that you should just break it into multiple pages. It helps to keep a clear and consistent structure that everyone can understand the flow of the website, including the spiders.

Google allows 50,000 URLs in a XML sitemap http://www.sitemaps.org/faq.php#faq_sitemap_size

but if Tim was referring to HTML sitemaps, I dont recall them saying there was a hard limit on URLs in a HTML sitemap.

My guess is that as long as the HTML sitemap is under 10MB it does not matter how many urls are in it.

Yes and if your site has more that 50,000 URLs you can break the sitemap up into 50,000 URL (or smaller) chunks, so there really is no limit.

you can use the "sitemap-index", that contain all the sitemap and submit it to google.

OH Confusion Glorious Confusion!!

I think you have sitemaps and pages confused. Google recommends a maximum of 100 links on a page, but sitemaps are not (or at least they should not be) pages.