Induction is your body's kickstart into fat burning mode so you need to be really strict. Then once it's gotten used to using excess body fats as fuel, you can slightly up your carb intake. The idea is to find the level of carbs where your body stops burning and starts storing. This will be your 'maintenance' point for life.
As for alcohol.... If you choose to drink after the induction phase, you'd be better sticking to hard spirits. Wines and beers are FULL of sugars. But spirits sugars have been turned to alcohol, so they're carb free. Have with diet drinks and voila. Sin free. You may find you're weigntloss will stop as your body will be processing the alcohol over anything else, and hunger pangs can worsen.
And water water water!!!