1.What are the tax implications - income tax, gift tax, wealth tax etc. for the money credited in the NRO Account?
As the funds are transferred by your wife to you, there is NO Income. Hence Income Tax rules don't apply. It would be treated as GIFT and come uder Gift Act. As per gift Act, one can transfer unlimited amount between close releatives. The defination of close relative as per Income Tax includes parents, spouse, siblings etc.
The interest you earn in NRO account is taxable in India.
2.Can I transfer this money to my parents and would that attract any tax?. I understand my parents will have bear any tax based on income they earn on my transfer... Are there any tax implications for me?
You can transfer this money to your parents. This will not be taxable to you. It will not be taxable to your parents as its Gift. Any income earned by your parents on this will ofcourse be taxable.
3.Can I move this money to NRE account and what is the process for that and how easy it is?
Its best if you had your wife send funds into NRE account. Direct transfer as much as know is not allowed. Having said that, it is possible to transfer funds out of India via proper paperwork, there is also a limit [quite large] on the amount that can be transferred a year. Get a CA to help you with the paperwork.
