Recognition of handwritten Marathi character/digits is comparatively a tough task as compared to English. It has several types of applications including the postal code reading and sorting, banks check amount processing. In this paper a novel feature extraction and selection method is proposed for the recognition of isolated handwritten Marathi numbers which is based on one dimensional Discrete Cosine Transform (DCT) algorithm. The scanned document is pre-processed and segmented to create isolated numerals. Features for each numeral can be calculated after normalizing the numeral image to 32 × 32 size. Based on these reduced features, the numerals are classified into appropriate groups. Neural network is used for classification of numerals based on the extracted features. The results of proposed method are compared with the results obtained using Discrete Wavelet Transform and zonal discrete cosine transform (ZDCT). The proposed approach gives improved results as compared to zonal DCT and DWT method. Experimental results shows accuracy observed for the method is 90.30% with normalized numeral image of size 32 × 32.