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 .
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