Hiba Property Transfer in Pakistan: Gift Deed, Mutation and Tax

In short

Where section 123 of the Transfer of Property Act applies, a gift of immovable property "must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses". Section 129 says the gifts chapter shall not "be deemed to affect any rule of Muslim law". The Sindh High Court has held that a valid gift under Islamic law needs an offer, an acceptance and delivery of possession. In Punjab, the Board of Revenue's notification of 30 December 2025, as reported by Dawn and APP, says no mutation shall be entered or sanctioned on an oral gift. Inheritance is exempt. The Income Tax Ordinance says no gain arises on a gift to a "relative" as it defines one. We found no gift exemption in sections 236C or 236K.

A hiba property transfer is a gift of land, a house or a plot without payment, for example from a parent to a child. Where the Transfer of Property Act's rules on gifts apply, they leave Muslim law untouched, and in Punjab the Board of Revenue has barred mutations based on an oral gift, according to Dawn and APP.

What a hiba is in law

The text below is from Pakistan Code, the Ministry of Law and Justice's official site (read on 3 November 2026).

Section 122. "'Gift' is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee." Acceptance "must be made during the lifetime of the donor and while he is still capable of giving".

Section 123. "For the purpose of making a gift of immoveable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses." Pakistan Code's notes record extensions of the Act to Sindh and of section 123 to Punjab's municipalities and notified areas and to cantonments. Separately, section 17(1)(a) of the Registration Act, 1908 makes registration compulsory for "instruments of gift of immoveable property"; the Sindh Judicial Academy's text of that Act for Sindh has the same clause.

Section 129. "Nothing in this Chapter relates to gifts of moveable property made in contemplation of death, or shall be deemed to affect any rule of Muslim law."

The three conditions of a hiba

The Sindh High Court (Circuit Court Hyderabad, R.A. No. 182 of 2016, order of 3 April 2018) said: "In order to constitute a valid gift under Islamic law, there must be an offer (ijab), an acceptance (qabul), and transfer (qabza)". It added that "without delivery of possession to the donee, the gift is held void even if it was made through a registered document".

Punjab: no mutation on an oral gift

Dawn reported on 1 January 2026 that under the Board of Revenue's instructions "no mutation shall be entered or sanctioned on the basis of an oral transaction in cases of sale, mortgage, exchange, or gift" and that "inheritance cases have been exempted". APP dates the notification 30 December 2025. We could not find it on the Board of Revenue's website, so this rests on those two reports.

Reporting the gift. Section 42 of the Punjab Land Revenue Act, 1967 says a person acquiring "by inheritance, purchase, mortgage, gift, or otherwise, any right in an estate as a land-owner" must report it to the patwari "within three months from the date of such acquisition". Under section 42-A, once the Board of Revenue notifies an estate's computerised record, the report goes to the Arazi Record Centre instead, within the same three months (find your centre).

E-registration. Business Recorder reported on 18 February 2026 that the Governor had promulgated the Punjab Land Revenue (Amendment) Ordinance, under which "an e-registration system has been introduced for land transfer" and "the Patwari will have the power to make only hereditary transfers". We could not confirm whether the ordinance became an Act or lapsed. For the e-registry steps, read property registration in Punjab.

Sindh, KP and Islamabad

In Sindh, the Transfer of Property Act and the Registration Act's clause on gift instruments both apply; the Sindh property transfer guide covers the registry and the mutation after it. For Khyber Pakhtunkhwa and Islamabad, we could not confirm a rule like Punjab's on oral-gift mutations.

How to transfer property by gift

1. Check the donor's title in the fard or the society record.
2. Draft the gift deed (hiba nama). Where section 123 applies, the deed must be signed by or on behalf of the donor and attested by at least two witnesses. Have a lawyer check it.
3. Pay stamp duty and register the deed at the sub-registrar's office for the area where the property lies; in Punjab, through PLRA's e-registration (how it works).
4. Hand over possession, which the Sindh High Court treats as essential to a hiba.
5. Get the mutation (intiqal hiba) in the land record, or the transfer in the society's or authority's record, and check it shows the donee.

A sale deed transfers for a price; a gift deed without one. For property passing at death, see inheritance mutation in Punjab.

Revocation. Section 126 of the Transfer of Property Act lets the parties agree that a gift is suspended or revoked on an event that "does not depend on the will of the donor", and allows revocation "in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded"; "Save as aforesaid a gift cannot be revoked." Under section 129 this does not affect any rule of Muslim law, so ask a lawyer.

Tax and stamp duty: what the texts say

Only what the texts say, from FBR's Income Tax Ordinance, 2001 amended up to 30.06.2026:

• Who is a relative (section 85(5)): "an ancestor, a descendant of any of the grandparents, or an adopted child, of the individual, or of a spouse of the individual", or "a spouse of the individual or of any person specified in clause (a)".
• The donor (section 79): no gain or loss arises on a disposal "by reason of a gift of the asset to a relative".
• The donee (section 39): income from other sources includes "any amount or fair market value of any property received without consideration or received as gift, other than gift received from relative".
• Advance taxes (236C and 236K): the person "responsible for registering, recording or attesting transfer of any immovable property" collects 236C from "the seller or transferor" and 236K from "the purchaser or transferee". We found no proviso in either section exempting a gift, and could not confirm how registrars treat gift deeds. The transfer tax calculator shows the rates.
• Stamp duty in Sindh: the Sindh Judicial Academy's text of the Stamp Act (amended up to 2023) charges a gift instrument "the same duty as is leviable on a Conveyance (No.23) for a consideration equal to the value of the property as set-forth in such instrument". We could not confirm the conveyance rate in force today.
• Stamp duty in Punjab, KP and Islamabad: we could not find each province's current schedule for gift deeds.

Hiba in Urdu

• Hiba nama (ہبہ نامہ): Rekhta's dictionary gives "deed of gift".
• Tamleek (تملیک): Rekhta gives "ownership, settlement of property". Tamleek nama is also used for a deed transferring ownership, so read what the paper says.
• Intiqal hiba: intiqal is the mutation; our property dictionary explains it.

Frequently asked questions

What is hiba property transfer?

A gift of property without payment. Where section 123 of the Transfer of Property Act applies, it needs a registered instrument signed by or for the donor and attested by at least two witnesses. Under Muslim law, which section 129 preserves, the Sindh High Court has held that it needs an offer, an acceptance and delivery of possession.

Is an oral hiba accepted for mutation in Punjab?

Not according to Dawn, which reported on 1 January 2026 that under the Board of Revenue's instructions no mutation is entered or sanctioned on an oral gift; APP dates the notification 30 December 2025. Inheritance is exempt.

How do I do intiqal hiba in Punjab?

Register the gift deed, then report the gift within three months of the acquisition: under the Land Revenue Act, to the patwari or, where the computerised record has started, to the Arazi Record Centre. Business Recorder reported that a February 2026 ordinance limits the patwari to hereditary transfers; its status is not confirmed.

Is there tax on a gift deed to my son or wife?

Under the Income Tax Ordinance, no gain arises to the donor on a gift to a relative, and the clause that counts gifts as the donee's income leaves out a gift from a relative. We found no gift exemption in 236C or 236K. Stamp duty depends on the province's stamp law.

Sources

1. Pakistan Code (Ministry of Law and Justice): The Transfer of Property Act, 1882, sections 122, 123, 126 and 129, and the note on its extent (read 3 November 2026) pakistancode.gov.pk
2. Pakistan Code (Ministry of Law and Justice): The Registration Act, 1908, sections 17(1)(a) and 28 (read 3 November 2026) pakistancode.gov.pk
3. Sindh High Court, Circuit Court Hyderabad: R.A. No. 182 of 2016, order of 3 April 2018 (read 3 November 2026) caselaw.shc.gov.pk
4. Dawn: Punjab bans land mutations based on oral transactions (1 January 2026) dawn.com
5. APP: Punjab bans oral land transfer (Multan, 31 December 2025) app.com.pk
6. Board of Revenue Punjab: The Punjab Land Revenue Act, 1967, sections 42 and 42-A (read 3 November 2026) bor.punjab.gov.pk
7. Business Recorder: Governor promulgates protection of ownership of immovable property (Amendment) Ord (18 February 2026) brecorder.com
8. FBR: Income Tax Ordinance, 2001, amended up to 30.06.2026, sections 39, 79, 85, 236C and 236K (read 3 November 2026) download1.fbr.gov.pk
9. Sindh Judicial Academy: Stamp Act, 1899, amendments up to Sindh Act No. XXVI of 2023, Schedule I, Article 33 (read 3 November 2026) sja.gos.pk
10. Sindh Judicial Academy: The Sindh Registration Act (Act No. XVI of 1908) as applicable to Sindh, section 17(1)(a) (read 3 November 2026) sja.gos.pk
11. Rekhta Dictionary: meaning of hiba-naama (read 3 November 2026) rekhtadictionary.com
12. Rekhta Dictionary: meaning of tamliik (read 3 November 2026) rekhtadictionary.com