Physiological signals retrieve the information from sensors implanted or attached to the human body. These signals are vital data sources that can assist in predicting the disease well before time and thus proper treatment can be made possible. With the addition of Internet of Things in healthcare, real-time data collection and pre-processing for signal analysis has reduced burden of in-person appointments and decision making on healthcare. Recently, Deep learning-based algorithms have been implemented by researchers for recognition, realization and prediction of diseases by extracting and analyzing the important features. In this research real-time 1-D timeseries data of on-body non-invasive bio-medical sensors have been acquired and pre-processed and analyzed for anomaly detection. Feature engineered parameters of large and diverse dataset have been used to train the data to make the anomaly detection system more reliable. For comprehensive real-time monitoring the implemented system uses wavelet time scattering features for classification and deep learning based autoencoder for anomaly detection of time series signals for assisting the clinical diagnosis of cardiovascular and muscular activity. In this research, an implementation of IoT based healthcare system using bio-medical sensors has been presented. This paper also aims to provide the analysis of cloud data acquired through bio-medical sensors using signal analysis techniques for anomaly detection and timeseries classification has been done for the disease prognosis in real-time. Wavelet time scattering based signals classification accuracy of 99.88% is achieved. In real time signals anomaly detection, 98% accuracy is achieved. The average Mean Absolute Error loss of 0.0072 for normal signals and 0.078 is achieved for anomaly signals.