All my family members are US Citizens. Wife and kids are living in US. I work in US for at least 7 months in a year. I just bought a house in India where wife and kids would be living there. The property and the mortgage are in both me and my wife's name. Do I required to withhold 30% or 10% (US-India treaty) on the mortgage interest payment?

Yes, the IRS could require that you withhold 30% of the mortgage payment if you deduct the mortgage interest.

However, you may discover that the interest payment for a house in India is NOT large enough to exceed the $11,900 joint standard deduction you get automatically by filing jointly with your wife.