If he recives HRA he can get exemption in following way
LEAST of the following shall be exempted
1) Actual HRA received
2) 40% or 50% of Basic salary depending upon city od residence
3) Rent paid less 10% salary
For example, assume one earns a basic salary of Rs 20,000 per month and rents a flat in Mumbai for Rs 5,000 per month. His actual HRA is Rs 8,000. He is eligible for 50 or 40 percent of the basic pay for HRA exemption.
1 )Actual HRA received – Rs 8,000
2) 50 percent of basic salary – Rs 10,000
3) Excess of rent paid over 10 percent of salary, i.e., Rs 5,000 less Rs 2,000 – Rs 3,000.
As such, Rs 3,000 per month is the least and will be the exemption allowable for HRA deduction.
But if he doesnt receive HRA he will not be able to claim any exemptions.
Another way is to claim deduction u/s 80GG here he can calim deduction as under
LEAST of following shall b allowed as deduction
1) Rs. 2000/- Pm.
2) 25% of the total income (after allowing all deductions except under this section).
3) Expenditure incurred in excess of 10% of the total income (after allowing all deductions except under this section).