Yes, this deduction is allowed only when an employee actually pay rent for his residence purpose. If no rent is paid for any period then no deduction is allowed for that period.
Actual rent payment required for HRA deduction - absence of rent payment for any period disqualifies entitlement to deduction.
The House Rent Allowance deduction under section 10(13A) is conditional on actual rent payment for residential accommodation; if no rent is paid for any period, no deduction is allowable for that period, and entitlement to HRA or notional occupancy does not replace the need for real rent outgo.
Note: It is a system-generated summary and is for quick reference only.