Gifting property to a child, spouse or sibling is a deeply rooted practice in Pakistan, and the law gives it a firm footing through the doctrine of hiba under Muslim personal law. But a gift that is not done properly - no delivered possession, no registration, no clear record - is exactly the kind of transfer that ends up in a bitter family suit years later. This guide walks through the requirements of a valid hiba, the registration and stamp duty steps, the tax position, and how a gift compares with waiting for inheritance.
What is a hiba (gift deed)?
A hiba is a voluntary, immediate transfer of ownership in property from one living person (the donor) to another (the donee) without any consideration or exchange of money. For Muslims, gifts are governed by the Muslim Personal Law (Shariat) Application Act 1962 and classical Islamic law, read alongside the Transfer of Property Act 1882, the Registration Act 1908 and the Stamp Act 1899. The written record of a gift is commonly called a hiba nama or gift deed. Unlike a sale, no price changes hands; unlike a will, a hiba takes effect at once, not after death.
The three requirements of a valid hiba
The Supreme Court of Pakistan has repeatedly held that a hiba is complete only when three essentials are satisfied. Possession has been described as "the soul of a valid hiba".
| Element | What it means | Why it matters |
|---|---|---|
| Offer (Ijab) | The donor clearly declares an intention to gift the property, of their own free will. | Must be voluntary - coercion or fraud makes the gift challengeable. |
| Acceptance (Qubool) | The donee accepts the gift during the donor's lifetime. | If the donee dies before accepting, or never accepts, the gift is void. |
| Possession (Qabza) | The donor actually delivers possession or control of the property to the donee. | Without delivery of possession the gift is incomplete and unenforceable. |
Two further conditions sit behind these: the donor must be an adult of sound mind who genuinely owns the property, and the property gifted must be existing and identifiable. A gift of property the donor does not yet own is not valid.
Does a gift deed have to be registered?
This is where hiba differs from a sale deed. Section 129 of the Transfer of Property Act 1882 exempts gifts made by Muslims from the compulsory registration that normally applies to immovable property transfers. An oral gift, if the three essentials (especially delivery of possession) are met, can be perfectly valid in law.
Practical advice: "valid" is not the same as "safe". An unregistered oral gift is the single most disputed kind of property transfer in Pakistani courts. A written hiba nama, attested by two adult witnesses, registered with the Sub-Registrar and followed by a mutation (intiqal) in the land record, gives you an unshakeable paper trail. Provincial rules increasingly push gifts towards registration in any case.
Step-by-step: registering a gift deed
For immovable property such as a house or plot, the typical process runs like this:
| # | Step | Detail |
|---|---|---|
| 1 | Draft the hiba nama | Prepared on stamp paper of the correct value, naming donor, donee, property and the fact of offer, acceptance and possession. |
| 2 | Arrange witnesses | At least two adult witnesses attest the deed. CNICs of all parties and witnesses are required. |
| 3 | Prove the relationship | For a blood-relative gift, obtain a Family Registration Certificate (FRC) from NADRA to claim tax and duty concessions. |
| 4 | Pay stamp duty and fees | Deposit stamp duty, registration fee and any applicable local charges (see the tax section below). |
| 5 | Register with the Sub-Registrar | Both parties appear before the Sub-Registrar, who records and registers the deed. |
| 6 | Apply for mutation | Update the revenue record (intiqal / fard) so the donee is shown as the new owner. |
Registration of a document is generally required within four months of execution under the Registration Act. See our fuller walk-through of the property transfer, registry and mutation process.
Stamp duty and tax on gift deeds
The headline benefit of a hiba between close relatives is tax relief. Gifts of immovable property to parents, grandparents, spouse, children and siblings are generally exempt from advance income tax and Capital Value Tax (CVT). Gifts to non-relatives do not enjoy this exemption and are taxed like an ordinary transfer.
| Charge | Blood-relative gift | Non-relative gift |
|---|---|---|
| Advance tax / CVT | Generally exempt | Payable on valuation |
| Stamp duty | Concessional / reduced rates common | Full provincial rate |
| Registration fee | Nominal (often a few hundred to a couple of thousand PKR) | As per provincial schedule |
| Proof needed | NADRA FRC establishing the relationship | Not applicable |
Stamp duty and registration charges are set province by province (Punjab, Sindh, KP, Balochistan and Islamabad each differ) and are usually calculated on the DC / district valuation rate, not the free-market price. Exact rates change with each provincial budget, so confirm the current figure with your Sub-Registrar or take a quick consultation before you pay. For the provincial picture, see our stamp duty guide.
Can a gift be revoked?
The answer depends on timing and relationship. Before possession is delivered, the donor may revoke the offer freely. Once possession has passed and the deed is registered, revocation becomes very difficult and generally needs a court decree on defined grounds, such as fraud, coercion or a failure of the essentials. Islamic law also treats certain gifts as irrevocable outright - notably a gift to one's spouse, and a gift to a person within the prohibited degrees of relationship.
Deathbed gifts (marz-ul-maut)
A gift made by a donor suffering from a death-illness is not treated as an ordinary hiba. Under the doctrine of marz-ul-maut, such a gift is dealt with like a will: it cannot exceed one-third of the estate, and it cannot be made in favour of a legal heir unless the other heirs consent. This stops a dying person from defeating the fixed inheritance shares of their heirs, and it is a frequent ground on which family gifts are challenged after death.
Gift versus inheritance
People often use a hiba precisely to avoid the rigidity of inheritance. The two work very differently:
| Feature | Gift (Hiba) | Inheritance (Faraid) |
|---|---|---|
| When it takes effect | Immediately, in the donor's lifetime | Only after death |
| Who receives | Anyone the donor chooses | Legal heirs in fixed shares |
| Shares | Donor decides freely (subject to marz-ul-maut) | Fixed - e.g. a son takes twice a daughter's share |
| Can it be changed | Not after completed and possession delivered | Cannot be altered by the deceased |
| Possession required | Yes - essential | Not applicable |
A worked comparison: suppose a father owns a plot and has one son and one daughter. If he does nothing, on his death the estate follows Faraid - the son inherits two-thirds and the daughter one-third (a 2:1 ratio). If instead he gifts the plot equally by hiba during his life, each child can receive one-half, because a gift is not bound by the inheritance ratios. To see how heir shares fall out in your own case, use our inheritance calculator, and read up on the one-third rule for wills if you are weighing a gift against a bequest.
Frequently asked questions
Do I have to register a gift deed?
Section 129 of the Transfer of Property Act exempts Muslim gifts from compulsory registration, so an oral hiba with delivered possession can be valid. But registration plus mutation is strongly advised to protect the transfer and is increasingly required under provincial rules.
Is a gift to my son or daughter taxable?
Gifts of property to close blood relatives - children, parents, spouse, siblings, grandparents - are generally exempt from advance tax and CVT. A NADRA FRC proves the relationship. Stamp duty may still apply at concessional rates.
Can I take back property I have gifted?
Only in limited cases. Before possession passes you may revoke it; after possession and registration you usually need a court decree on grounds like fraud. Gifts to a spouse or within prohibited degrees cannot be revoked.
How many witnesses does a hiba nama need?
At least two adult witnesses should attest the deed, and CNICs of the parties and witnesses are required for registration.
Can a sick person gift all their property?
No. A gift made during a death-illness (marz-ul-maut) is capped at one-third of the estate and cannot go to a legal heir without the other heirs' consent.
Is a gift better than leaving property in a will?
It depends on your goals. A gift transfers ownership now and can bypass the fixed inheritance ratios, while a will is limited to one-third and takes effect after death. Get tailored advice before deciding.