Query on fixed deposits and gift tax

In my view.

For the 1st query it will depend on the accounting system which the individual follows, if he adopts accrual system then interest has to be accounted and tax paid on it, if cash system is followed then the interest wil be accounted on receipt of the interest and tax has to be remitted at that time.

A person can gift any amount to wife and kids, there is no restriction.

It depends on the type of FD. Most FD will credit your account with the interest accruued for the specified period and a certificate of interest is issued. If the FD interest is accrued in the FY 2012/13, then the interest accrued for the period before march 31, will be taxable and needs to be shown in your IT returns. Check with the bank regarding the certificate of interest for the FY 2012/13. 

You can transfer some money to your wife's account and children's account.