A father in Lahore wants to give his son the family house. Not sell it. Not leave it in a will. Give it now, while he is alive. In Pakistan, the paper that does this is a gift deed. People also call it hiba nama.
This guide explains what makes a gift deed valid, what it costs, and how to finish it.
What is a gift deed?
A gift is a transfer of property made voluntarily and without money changing hands. Section 122 of the Transfer of Property Act 1882 defines it. The person giving is the donor. The person receiving is the donee. The gift must be accepted during the lifetime of the donor. If the donee dies before accepting, the gift is void. The property must already exist, and the donor must own it.
For Muslims, the law of hiba applies
Most gifts in Pakistan are made by Muslims, and Muslim law has its own rules. Section 129 of the Transfer of Property Act says the general gift rules do not affect Muslim law. The Muslim Personal Law (Shariat) Application Act 1962 makes the Muslim Personal Law the rule of decision for Muslim gifts.
Under Muslim law, a gift is called hiba. A hiba is complete when three things happen:
- Declaration. The donor clearly says he is giving the property (ijab).
- Acceptance. The donee accepts the gift (qabul).
- Delivery of possession. The donor hands over control of the property (qabza).
Possession is often called the soul of a hiba. A gift on paper with no real possession is a gift that heirs will attack later.
Does a gift deed need to be registered?
Muslim law allows an oral hiba if the three essentials are proved. Written instruments are a different matter. The Registration Act 1908 says in Section 17 that instruments of gift of immovable property must be registered. Section 123 of the Transfer of Property Act adds that such a gift must be made by a registered instrument, signed by the donor and attested by at least two witnesses.
An oral hiba can be valid between the parties, but proving it later is hard. Unregistered oral gifts are the most disputed transfers in Pakistani courts. When the donor dies, heirs challenge the gift, and the claimant must prove all three essentials.
A registered deed names the donor, the donee and the property, and states that possession was delivered. The Sub Registrar keeps a copy. The law says it must be presented for registration within four months of execution.
What stamp duty costs in Punjab
Stamp duty is the tax on the deed paper, charged on the value of the property. Punjab changed its stamp duty rules twice in 2026. In April, the Stamp (Amendment) Ordinance 2026 set a uniform 1 percent duty on property transfers. In October, the Stamp (Second Amendment) Ordinance 2026 exempted family gifts.
Under the second ordinance, gift deeds between close family members are exempt from stamp duty. The exemption covers husband to wife, wife to husband, father or mother to son or daughter, grandparents to grandchildren, and brother to sister or brother.
Gift deeds to people outside these relationships pay 1 percent of the property value, taken from the district collector rate. Other provinces have their own rates.
Does the state tax a gift?
The Federal Board of Revenue settled this in Circular No. 10 of 2015. Gifts among family members, meaning spouse, father, mother, son, daughter, brother and sister, are treated as genuine and do not suffer withholding tax under Section 236K of the Income Tax Ordinance 2001.
Section 79 of the Income Tax Ordinance says no gain or loss is recognized when property is disposed of by way of gift. The donee pays no capital gains tax on a genuine family gift. Keep proof of the relationship, like a family registration certificate from NADRA.
Mutation: the record that matters
Registration changes the paper. Mutation changes the government record. In Punjab, land records are kept by the Punjab Land Records Authority. Mutation, also called intiqal, is the process of transferring the ownership entry from the donor to the donee. You apply at the Arazi Record Center for your area with your CNIC, the registered gift deed and the property details.
- Get a token at the reception counter with biometric verification.
- Submit the documents. The mutation is entered in the system.
- Pay the fee and get the challan.
- Appear before the revenue officer with the parties and witnesses. The officer verifies and attests the mutation.
After attestation, the fard shows the donee as the owner. That entry is what banks, courts and buyers look at. The full process is in our guide on property mutation in Pakistan, and to understand the record itself, read what a fard is.
Can a gift be taken back?
Before possession is delivered, the donor can change his mind. After possession, it becomes very hard. Section 126 of the Transfer of Property Act says a gift cannot be revoked once made, except in limited cases. Under Muslim law, gifts between spouses, gifts to relatives within prohibited degrees, and sadqah can never be revoked. A donor who wants the property back usually needs a court decree, on narrow grounds like fraud or coercion.
Gift, will or sale?
A gift transfers ownership now. A will transfers after death and, for Muslims, is limited to one third of the estate. A sale involves money.
One warning. A gift made during a deathbed illness is treated like a will. It cannot exceed one third of the estate and cannot go to a legal heir without the consent of the other heirs.
People also use gifts to give children unequal shares, because hiba is not bound by inheritance ratios. That is allowed, but it is the kind of arrangement heirs challenge after death. Our guide on dividing inherited property in Pakistan explains the alternative.
The steps, in short
- Check the property record first. Confirm the donor owns it and there is no pending dispute.
- Draft the gift deed. Name the donor, the donee, the property, and state that possession was delivered.
- Sign it before two adult witnesses. Pay the stamp duty and register it with the Sub Registrar within four months.
- Apply for mutation at the Arazi Record Center.
- Keep the deed, the registration certificate and the mutated fard together.
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