Whether exemption of HRA is allowed if rent is paid to any family members?

Manual - Exempted Income u/s 10 - Salary Specific

Yes, even if rent is paid to any family members, HRA is allowed. Thus, if an individual live with his/her parents and pay rent to them then also they can claim that for tax deductions as HRA. However, one cannot pay rent to their spouse. 
2013 (8) TMI 103 - ITAT AHMEDABAD

Dated: 18-5-2018