Treatment of income on gift from parent to housewife daugher

Dear Sirs,

 I am planning to gift my daughter a lumpsum amount of money so that she can put it in an FD and get a regular monthly income. My daughter is a housewife with no other source of income.

I have two queries here

1) Do I/she need to pay any gift tax or someother tax on the lumpsum.

2) Can my daughter's income from the FD be treated as seperate income on which she pays tax according to the appropriate slab or does the interest income need to be clubbed with her husband's income and then taxed accordingly ?

Thanks,

Raju