Urgent guidance pls

One time Settlement Amount paid by Husband to Wife in lieu of Divorce

1. While paying settlement amount to wife , do the husband deduct TDS?- No TDS is deductible on the amount paid to wife by way of settlement.

2. Would  the wife have to pay taxes after reciept of settlement amount?- No the wife would not be required to pay any taxes on the amount received but once she deposits this amount in Bank FD and earns interest she will be liable to pay tax if the gross amount of such interest along with any other income exceeds the maximum amount chargeable to tax.

3. Can husband claim any tax benefits in case the amount of settlement is huge? No tax benefit can be claimed by Husband as this is not any deduction allowable under any section of Income tax Act.

4. What is the best mode of payment- DD/ Cheque/PO etc?- Cheque is best way to pay as it cannot be denied by other party and has a valid trail.