Avoidance of tax by transfer of money to wife

Depends on types of investments. Some returns are tax-free.

Yes, the same can be shown as a loan to the wife......and this practise is practically followed.

As money Received by Wife is post tax Income  and  Income received from Investment will be Taxed but can be avoided if Shown as Income of wife AS  Professional Income Received. 

Wife Can Show Income from Business / Profession as investment activities  can be considered as her Profession as Portolio mangement Services and income arising from this Acivities is chargeable to TAX but She can Claim EXPENSES for Running her portfolio mangement Servises for her Husband, And can even Charge for It from her Husband AND/ OR can also pay Interest to her Husband as money is of her Husband (IF shown As Loan),  but AS HER HUSBAND IS GETTING AN SALARY OF rs 85 lakhs which is Chargable to 30 % slab rates so it is Advisible to Charge As portfolio Mangement Services from the Returns received from Investment Activities. As Slab Rates of Wife Are not high As 30 % and also She  gets basic Exemption limit of RS 2,00,000/-.