@ Santosh Mishra,
There is no section 24(b)(i) in the income tax act.
I mean to refer CBDT CIRCULAR NO. 8/2012 [F.NO. 275/192/2012-IT(B)], DATED 5-10-2012, which says.
“Section 24(b) of the Act allows deduction from income from house property on interest on borrowed capital as under:-
“(i) the deduction is allowed only in case of house property which is owned and in the occupation of the employee for his own residence. However, if it is not actually occupied by the employee in view of his place of the employment being at other place, his residence in that other place should not be in a building belonging to him.”
At point 2), you have mentioned that there is no limit to claim interest.
I could not understand the conclusion in which you said, HRA and Interest benefits cannot be taken if the houses are situated in same city.
( Yes, if person is not staying in the property for which loan has been taken and he is claiming HRA benefit for another house in which he is staying, the said property can not be said as “self occupied property” hence, house loan interest benefit can be taken as the property is let out (deemed let out) & there is no limit for interest payment.
Both HRA and HL benefits would be available to assessee, whether the property are situated in the same city or not.
(Why not, he can claim. But HL benefits can not be claimed as self occupied property, how one person can self-occupy two houses at one point of time. )