Gift money

Gift received in this case is non-taxable in the hands of the wife. 

Thanks. But since this is old entry in bank account (2006) but now she want to file return in 2013. How to show entry and take money from joint account to individual account?

simply withdraw the money and use it as they want, nothing will happen regarding income tax dept. is concerned

In case AO come up then do we need to keep reference to old check details?

Gift it again from joint a/c to individual a/c and file a return accordingly.

But if once you take it into individual a/c then all future income arising of that money will be taxable in the hands of the Transferee i.e.Assessee(Wife)