Recently I have got transfer in us on L1 visa, since my wife & daughter is in India can I claim as dependence deduction for them? Also can I claim rent paid as deduction

Sapra:

You can file jointly with your wife regardless of where she is located.

In order to claim your child as a dependent, the child MUST be located in the U.S. sometime in the calendar year.

Rent is deductible ONLY IF you are in the U.S. for less than one year.

1. If you complete Substantial Presence Test in 2010 or 2011, you can file joint return as residents. Both of you must declare worldwide income on the tax return. For taxes paid in India you can file Foreign Tax Credit Form 1116 or/and Foreign Income Exclusion Form 2555.
You may be able to deduct moving expenses Form 3903.
2. A dependent must be citizen or resident of the U.S. If your daughter is in U.S. for any period during 2010, on the joint return you can claim her dependent.
3. Rent paid in U.S. is not deductible unless you are expected to be in U.S. for less than 1 year. In that case, you can deduct Travel expenses -- transportation, lodging and meals. Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 9 of Schedule A (Form 1040NR).