Interference of mother in law in married life

My mother in law keeps shouting on me on small things. She has big expectations and also speak about if you do don’t do this you will have to face repercussions. Household chores is a big issue for her. And if I disagree to something, she keeps takes her son to speak throughout the day and night about me. She doesn’t allow her son to go anywhere with her wife or children. A couple days back she screamed at me by showing a finger, asked me to leave the room. And when I asked her not to talk to me this way, she didn’t like it and complaint about the same to her son and husband. She doesn’t like me going in society, anyone speaking to me, doesn’t let me know about any functions. She keeps hold on everyone. Commands on everyone. And the who doesn’t listen is dead. My husband doesnot take any stand. Recently we had an argument on mother in laws interference and her behaviour towards me. He did not like that I told her not talk to me loudly by showing finger. I do not know what to do and how to go ahead. I cannot live with my mother in law. She keeps on torturing and my husband wants to live with her in same house. We have two kids (6yrs old son and 16months old)