Land loan and income tax

You can claim deduction for interest paid through EMI up to Rs. 200000 u/s 24(b) if the house is going to be self occupied but if it is for the purpose to let out then there is no such limitation.Provided you should have proof that the loan taken have been actually used for the house property that includes land too.Yes a certificate from the bank that both the loans(At least the first loan) are for the purpose of that house property will be required.

Thanks for clarification. One additional query:

I have been claiming interest paid through EMI, for one of my property, past few years. 

Can I replace the claim of previous property with new property claim? Given that I would be paying higher amount as interest in new propoerty loan, it makes sense to change property/loan detail for this year claim. Just wanted to know if there's any issue with this change? 

If you want to take a new loan to repay the previous loan then in that case also the interest payable on that loan would be deductible as per Circular No. 28-Income Tax dated 20-8-1969.

If you want to claim interest on loan taken for other house property which is commercial in nature then also the interest amount will be deductible u/s 24(b).