You have not elaborated if the academic job was salaried or contractual. If it was salaried, then, you will have two heads of income “Salary” and ” Income from profession” , otherwise only “professional income” .
Income from profession is to be computed by deducting all kinds of expense including depreciation on your car, car fuel expense or repairing from the gross receipt. As far as rental is concerned, you should pay some amount of rent and that much rent can be claimed as expense. It does not matter if the rental agreement is in youe wife’s name. It will be better if the rental payment is done by cheque as it serves evidence of paying rent.
For both of you , ITR -4 is required to be filed.
Remember also that if total receipt from your profession exceeds Rs 10,00,000, you will have to get your accounts audited.
Special Books to be maintained!
Further , as per Rule 6F , you will have to maintain books of accounts like cash book, ledger etc , [read hereWho Are Required to Maintain Books of Accounts ?] but because you are medical professionals ,following two books are exclusively for be maintained by medical professionals.
(3) A person carrying on medical profession shall, in addition to the books of account and other documents specified in sub-rule (2), keep and maintain the following, namely :—
(i) a daily case register in Form No. 3C;
(ii) an inventory under broad heads, as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.
I would suggest take help of any good CAs .
Dr Pritesh, i am in profession of legal compliance service provider which could be beneficial for your tax compliance requirement. My contact no is 9325032751
For the FY 2011-12 what is the senior citizen age limit for IT purpose and what are the additional benefits available with mention of slabs of rates of taxes vis a vis slab amounts
The age for becoming Senior Citizen is now 60 years who are exempted from tax if total income is upto Rs 2,50,000 . When one reaches 80 years, he /she will become Very Senior Citizen whose exemption limit is upto Rs 5,00,000 .
Ironically, many other deductions like 80D or 80DDB is still mentioning Senior Citizen at 65 years . I think , CBDT will amend these in coming months.