Income from house property

I have one house in the names of my spouse and myself and there is no loan against this house.

I have a second house which is in my mothers name and mine. This house is occupied by my parents and I have a housing loan against this house.

Should I show the second house and claim benefit on housing loan interest?

Will this not be counterproductive in future when the interest reduces and I'll have to pay taxes on notional rent and wealth tax

what is the best way to handle this?