Gift Deed of Property in Punjab: Hiba Process and Stamp Duty

Many families in Pakistan transfer a house or plot to a wife, son, daughter or sibling as a gift rather than a sale. This is done through a gift deed, known as hiba or hiba nama. In October 2026, Punjab removed stamp duty on gift deeds between close relatives, which makes this route much cheaper than before. This guide explains what makes a gift of property valid, the documents and steps in Punjab, the current stamp duty and the mistakes that can lead to disputes later.

Quick answer: A gift of property (hiba) needs three things: a clear offer by the owner, acceptance by the person receiving it and delivery of possession. Under the Punjab Stamp (Second Amendment) Ordinance 2026, gift deeds between spouses, parents and children, grandparents and grandchildren, and brothers and sisters carry no stamp duty, and other gift deeds are charged 1%. Register the deed and update the land or society record so the new owner is shown officially.

What Is a Gift Deed (Hiba)?

A gift deed is a written document in which an owner transfers property to another person without payment. In Islamic law this is called hiba. Once the gift is complete, the person receiving it becomes the full owner, and the property is no longer part of the giver's estate.

People commonly use a gift deed to:

• Transfer a home to a spouse
• Give property to children during their lifetime
• Give a share of property to a daughter or sister
• Settle family property arrangements without a sale

Three Conditions of a Valid Hiba

1. Offer (ijab): the owner clearly declares the gift, of their own free will, without pressure or fraud.
2. Acceptance (qubool): the person receiving the gift accepts it during the giver's lifetime.
3. Possession (qabza): the giver hands over possession or control of the property. This is the most important condition, and a gift without possession can be challenged.

The giver must be an adult of sound mind who owns the property, and the property must be clearly identified, with its address, plot number or khasra number.

Stamp Duty on Gift Deeds in Punjab 2026

The Punjab Stamp (Second Amendment) Ordinance 2026, published in October 2026, changed the stamp duty on gift deeds:

• No stamp duty on gifts between husband and wife, parents and children, grandparents and grandchildren, and brothers and sisters.
• 1% stamp duty on other gift deeds, reduced from 2%.

Example: For a property valued at Rs 1 crore, a gift from a father to his son has no stamp duty. A gift to a nephew or a friend is charged 1%, which is Rs 100,000.

The exemption covers stamp duty only. Registration fees, mutation charges and society transfer fees may still apply, so confirm the full amount with the Sub-Registrar, the Arazi Record Centre or the society office before you start.

Documents Needed for a Gift Deed

• The gift deed (hiba nama) on e-stamp paper, naming the giver, the receiver and the property
• Original CNICs of the giver and the receiver
• CNICs of two adult witnesses
• Proof of ownership, such as the registry, fard, allotment letter or transfer letter
• NADRA Family Registration Certificate (FRC) to prove the relationship when claiming the close-relative exemption
• Recent photographs, if the office asks for them

Step-by-Step Process in Punjab

1. Verify the property record. Make sure the giver is the recorded owner and there is no mortgage or court order. Our guide to the fard online check in Punjab explains how.
2. Draft the gift deed. State the offer, the acceptance and the handing over of possession, with full property details. A lawyer or deed writer can help with the wording.
3. Get the e-stamp paper. Pay any stamp duty that applies. For close relatives, the duty is now zero, but the e-stamp is still used for the deed.
4. Sign before witnesses. The giver, the receiver and two witnesses sign the deed.
5. Register the deed. Both parties appear before the registering officer for biometric verification and registration.
6. Update the record. Apply for the gift mutation (intiqal hiba) so the land record shows the new owner. For society property, complete the transfer at the society office.
7. Hand over possession. Give the keys and original documents to the new owner, and keep copies of everything.

For property in a housing society or development authority scheme, the society usually has its own gift transfer form and fee. Ask for its checklist first.

Taxes on Gifted Property

• FBR has exempted gifts of property to close relatives, such as a spouse, parents, children and siblings, from advance withholding tax on the transfer.
• Gifts to people outside the close family can attract advance tax, so take advice before you gift to a non-relative.
• When the person who received the gift later sells the property, the normal taxes on sale apply. Read our guide to FBR property tax in Pakistan.

Tax rules change with each budget, so confirm the current position with a tax adviser before signing.

Gift Deed vs Inheritance vs Sale

• Gift deed: made during the owner's lifetime, by choice, without payment. The owner decides who receives the property.
• Inheritance: happens after death, and shares are fixed by law. Read our guide to inheritance mutation in Punjab.
• Sale: involves payment, and stamp duty and federal taxes apply. See our guide to property transfer fees in Punjab.

Can a Gift Be Cancelled?

Before possession is handed over, the giver can usually withdraw the gift. After the deed is registered and possession is given, it generally cannot be cancelled without a court order, for example on grounds of fraud or pressure. Gifts to a spouse or a close blood relative are usually treated as final. A gift made during a final illness (marz-ul-maut) is treated differently and can be limited, so take legal advice in that situation.

Common Mistakes to Avoid

• Making an oral gift with no written, registered deed.
• Signing a deed but never handing over possession.
• Not updating the land or society record after registration.
• Gifting property that is jointly owned without the consent of the other owners.
• Using a gift deed to hide a sale, which can create tax and legal problems.
• Leaving out the relationship proof and paying stamp duty that was not due.

If you later decide to sell or rent a gifted property, you can check its market value against similar homes and plots on Pakistan Property.

Frequently Asked Questions

1. Is Stamp Duty Charged on a Gift Deed to My Son in Punjab?

No. Since October 2026, gift deeds between parents and children in Punjab carry no stamp duty. Other charges, such as registration or mutation fees, may still apply.

2. What Is the Stamp Duty on a Gift Deed to a Non-Relative?

Gift deeds outside the exempt close-relative list are charged 1% stamp duty in Punjab, reduced from 2%.

3. Is Possession Necessary for a Valid Gift?

Yes. Under Islamic law, a gift is complete only when possession or control of the property is handed over to the person receiving it.

4. Does a Gift Deed Need to Be Registered?

Registering the deed and updating the land or society record is strongly advised. An unregistered gift is much easier to dispute later.

5. Can a Father Gift Property to One Child Only?

An owner can gift property during their lifetime, but gifts that exclude other heirs can lead to family disputes. Take legal advice and keep the process fully documented.

6. Can a Gift Deed Be Cancelled After Registration?

Generally not, once possession has been handed over. Cancellation usually needs a court order on grounds such as fraud or coercion.