Is Overseas Interest paid for house can be added for Tax Benefit in US

Interest and property taxes are deductible whether or not the property is in the US. Where to deduct on your return depends upon the use of the property. If you are living and working in the US, it seems unlikely the house is your primary residence but, if members of your family live there, it could be treated as such. Unless, of course, you have a principal residence in the US. If the house is rented out, you must claim the rental income and deduct your expenses on Schedule E. Perhaps you should seek professional assistance with your taxes, if you are not sure of your choices. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans

You can deduct the mortgage interest on up to two properties on Schedule A. The house in India does not have to be the primary residence. Ira Smilovitz

I agree with Lanny & Ira with regard to deductibility. In addition, since you are a U.S. resident paying interest to a foreign person, you are subject to U.S. withholding tax on the interest paid (see IRC sections 881(a)(1) and 1442). I believe that the statutory rate of 30% would be reduced to

15% under the Article 11 of the U.S.-India Income Tax Treaty. You also need to file Form 1042.