Have you tried restarting apache since adding the new handler?

yes I have restarted and reloaded apache number of times but no effect.

Following the pattern from /etc/apache2/conf.d/php5.conf (which may or may not be a relic from a previous version, since it was last changed back in 2008 on my system, which was around the time I set up that Linode), you could try with the following in your .htaccess:

  AddType application/x-httpd-php .html .htm

If that doesn't work, you could instead try the following in .htaccess (pattern found in /etc/apache2/mods-available/php5.conf):

    <filesmatch "\.html?$"="">SetHandler application/x-httpd-php</filesmatch> 

Either of these versions will match both .htm and .html file extensions.

Thanks a lot … it worked … earlier I was trying AddType application/x-httpd-php5 .php .html .htm which prompted me to download files.

But can you guide me about how to add this line in httpd.conf or php5.conf (dont not exists), so I dont have to add this line in every .htaccess?

.htaccess for mod_php ^

SetEnv PHPRC /location/todir/containing/phpinifile

.htaccess for php as cgi ^

AddHandler php-cgi .php .htm

Action php-cgi /cgi-bin/php5.cgi

Shell wrapper for custom php.ini ^

!/bin/sh

export PHPFCGICHILDREN=3

exec php5.cgi -c /abs/php5/php.ini

That's a little guide of what you have to use your htaccess

Regards