I want to know if android supports virtual memory concept.I know windows supports virtual memory but what about android? Do our android phones store less used data out of RAM?
Android doesn't use virtual memory (in the sense you mean) by default, because it has a higher-level mechanism. Transparently writing pages of memory to flash storage is bad for battery life (and for the life of your flash storage, which can only handle a certain number of writes) and performance, especially since the application has no control over which parts of memory are "paged out".
Instead, Android manages memory using the same mechanism it uses to decide when to terminate apps that are no longer running. When it finds it needs to free up some RAM, it chooses an app that was cached (one that isn't currently in use). It terminates this app to free its RAM, but first, it gives that app's activities a chance to save some state by writing it to storage.
By making the app explicitly choose what to save to storage, instead of just saving the whole of that app's RAM contents, Android can reduce the amount it has to write from storage and later read back. This saves storage, and saves battery power and time, because each write to and read from storage costs time and power.
Of course, Android is based on Linux, and uses virtual memory in other ways not visible to the user. Android systems must have an MMU, so apps use virtual, not physical, addresses. This protects apps from having their private data in RAM read by other apps, which is necessary for a secure system. It also uses Linux's delayed-commit to save memory: when a process asks for more memory, it only gets pages of physical memory when it actually uses them. Virtual memory also allows memory-mapped access to files in the filesystem and to memory-mapped hardware. None of this is anything to do with swap files, but it means it's not quite accurate to say that Android doesn't use virtual memory.
You can enable swap on Android: see this related question for more details. It's not recommended to do so in most cases, because it defeats the memory-saving mechanism described above. Adding a swap partition will make the battery run down faster, wear out your flash storage faster, and make the system less responsive. You'd only want to do it if you absolutely must run an app that requires more RAM than your device has.