Interest on housing loan

Housing Loan Interest:

In case of Housing Loan to  Bank employees generally two accounts are maintained

• One for Principal
• One for Accrued Interest

First principal is adjusted from the repayment and after wards, interest is reduced.

Now, what would be the treatment in Income Tax return:

• Should we take the deduction of total repayment amount as principal repayment   in 80 C ( Up to Rs. 1 Lac ) and the accrued interest too U/s 24 B ( Negative income up to Rs. 1,50,000).
• Some other treatment.

Please Clarify.

 CA Alok Goel

M - 9837080659