I know that interest on 2nd house if fully deducted from taxable income.
My question is. 1) Can this second house need to be in same city where i am staying or another city ?
2) If i had closed housing loan for first house , can i claim full interest of 2nd house as deduction Or to claim deduction of interest of 2nd house, the Housing loan of 1st house should not be closed?
No it can be in same city too. But if you are occupying 1st house then second house will be deemed to be let out property & Notional income will have to be added.