Interest on house loan -

No, interset on borrowed capital is allowed for one house only.

I am not sure about this, but still i would like to give out my opinion.If you own 2 houses, then, the one in which you live will be self occupied and the other one will be deemed to be letout. So you can claim interest on loan u/s.24 subject to the restriction that in the case of self occupied property, the maximum amount of interest that can be claimed would be Rs.1,50,000.00 and for deemed to be letout, it will be the actual amount paid (no ceiling limit).

However the principal amount of loan repaid can be claimed u/s.80C upto a maximum of Rs.1,00,000.00

i also agree with the answer & logic given by M sriram