Gift Law in Pakistan - Hiba Law in Pakistan - Gift Deed Law

Gift Law in Pakistan - Hiba Law in Pakistan
Gift Law in Pakistan - Hiba Law in Pakistan


In the name of ALLAH, the most beneficent, the most merciful

1.           What is gift?

2.           Does an Oral Gift Valid? or Only Written Gift Deed (Hiba Nama-ہبہ نامہ ) is valid?

3.           What is Mutation of Oral Gift (ہبہ انتقال زبانی )?

4.           How to write a Gift Deed?

5.           Registration of Gift Deed?

6.           Registration charges on gift deed?

7.           Can a gift deed be challenged in court?

8.           Cancellation of Gift Deed?


1.           What is gift?


The definition of gift (also called Hiba) is provided in section 122 of “The Transfer of Property Act 1882”, which speaks as under:-


122. Gift” defined.– “Gift” is the transfer of certain existing movable or immovable 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 when to be made.– Such acceptance must be made during the lifetime of the donor and while he is still capable of giving. If the donee dies before acceptance, the gift is void.


Before explaining many other things in this section, I would like explain three terms (1) Donor (2) Donee (3) Gifted property. The Donor is a person, who gifts out his property. The donee is the person in whose favour property is gifted out (3) Gifted Property is the property, which the donor gifts-out to the donee.



Other six things which are mentioned in section 122 of transfer of Property Act (TPA), and require clarification are as under:- first thing, a gift is the transfer of property either movable or immovable by the donor to the donee, second thing, this transfer must be made voluntarily means without any pressure or coercion on the donor, third thing, the gift should be without consideration, fourth thing, the gift should be accepted by the donee himself/ herself or through his/her representative, fifth thing, the acceptance of gift by the donee must be made during the life time of donor and at that time the donor must also be capable of gifting out the property, sixth / last thing, if the donee dies before he accepts the gift, the gift is void. Means, the acceptance of gift by the donee is also mandatory during his life time and the gift will not be considered valid if only donor offers about gift and donee dies before acceptance.



2.  Does an Oral Gift Valid? or Only Written Gift Deed (Hiba Nama-ہبہ نامہ ) is valid?


Though, a gift can be made orally but it is not the recommended way especially for immovable property because the Oral Gift cannot be proved easily in the court. An Oral Gift, without writing a Gift Deed, paying Stamp Duty and other taxes, is not itself a proof of ownership in the name of donee and in such case, the donee has to file a suit in the competent court of law and has to establish that the property was gifted to him by the donor, and after following other legal formalities, the donee can get title document (ownership document).


So, I recommend you to always write a Gift Deed, pay the Stamp Duty and other taxes and also get it registered with Sub Registrar concerned.


Because, in the process of gift, the ownership rights are intended to be transferred in the name of donee, therefore, its registration is mandatory under section 17 of THE REGISTRATION ACT 1908.


3.  What is Mutation of Oral Gift (ہبہ انتقال زبانی )?


Mutation (Inteqal) of Oral Gift, also called (ہبہ انتقال زبانی ) is another way, by which the property in Rural Areas can be gifted out.


During the process of mutation of oral gift, neither any Gift Deed is drafted nor gets registered. In this case, the donor has to appear before the Patwari concerned and then Revenue Officer (Usually Tehsildar), and after recording of statements of the parties, the Mutation of Gift is entered and then sanctioned. This process also involves payment of different fees/ taxes.


Be Aware, Mutation of oral gift as stated above is not the recommended way for transferring the property because it does not create any title as held by the Supreme Courts of Pakistan in number of cases. The courts say that the mutation is not a document of title and meant for fiscal purpose only.


If at any stage, the Mutation of oral gift is challenged before the Civil Court, the Civil Court may cancel it easily, if the gift is not proved.


However, if the mutation is sanctioned on the basis of registered Gift Deed, then its ok but only Mutation of Gift without being followed by registered Gift Deed, is not the safe way to transfer the property.


On the other hand, a registered Gift Deed is a title document and even if it is challenged before Civil Court, it is not very much easy to get it cancelled because the court give more importance to a  registered document as compare to only mutation.


4.  How to write a Gift Deed?


Writing a Gift Deed is tricky but not difficult task. To avoid any future disputes, the Gift Deed should be drafted with great care and by taking all precautionary measures. Three ingredients of Gift should also be considered when writing a Gift Deed. These three ingredients are (1) Offer (2) Acceptance (3) Delivery of possession.


How to write a Gift Deed, you can download formats from the links given below:-


Click here to download Gift Deed in English


Click here to download Gift Deed (Hiba Nama) in Urdu


5.  Registration of Gift Deed?


 As stated above, the registration of Gift Deed is mandatory under section 17 of THE REGISTRATION ACT 1908.


The registration of Gift Deed, involves various steps for example, like Arranging various documents like Record of rights (FARD) and Mutation (if applicable) from Patwari or Arazi Record Centre (Land Record Centre), previous Registry, CNICs of donor and donee etc, CNICs of witnesses, Purchasing Stamp Papers from Bank of Punjab by filing out E-Challan online, Drafting Gift Deed, Paying various taxes like Stamp Duty, Registration Fee, Transfer of Immovable Property Tax (TIP) etc, Making statements before the Sub Registrar concerned


6.  Registration charges on gift deed?


The expenses on registration of Gift Deed are not fixed and may vary depends on number of things for example, where property is situated either in Rural Area or Urban Area, within limits of Metropolitan Corporation or Cantonment area?, What is DC (Deputy Commissioner) rate of that property?  In whose favour (legal heir or not) property is gifted out.


In Punjab, the Stamp Duty may be 1% or 3% percent of total DC value of the property.   


As far as Registration Fee is concerned, same is fixed and is to be paid along with Stamp Duty, when filling E-Challan  online for obtaining Stamp Papers.  


In Punjab, the registration fee of Gift Deed is only Rs. 500/- if the  value/ price / DC Rate of the property does not exceeds Rs. 5,00,000/-. On the other hand, if the DC rate of the property exceeds 5,00,000/-, then Rs. 1000/- is required to be paid as registration fee for Gift Deed.


7.  Can a gift deed be challenged in court?


The validity of any Gift, made either through mutation of gift (oral) or through registered Gift Deed can be called in question in court but the thing which is to be proved by the challenging person is that the gift was not made by the donor voluntarily or there was some pressure on the donor, and some fraud or misrepresentation was done.


8.  Cancellation of Gift Deed?


The Question is to whether (1) Cancellation of Mutation of Gift or (2) cancellation of registered Gift Deed, because these two things are different from each other, the detail of which has already been described earlier.


If a registered Gift Deed is required to be cancelled,  only Civil Court can be approached by way of filing a suit for declaration, cancellation and seeking other relief.


If a mutation of Gift is required to be cancelled, that too containing long standing entries or mutation of gift is alleged to have been sanctioned by committing fraud or misrepresentation,  in this case too, only Civil Court has the jurisdiction to cancel the mutation of gift.


Many applications regarding Cancellation of mutation of gift, wherein it is alleged that the mutation is outcome of fraud, are filed before Revenue Officers but these applications are some time rejected by the Revenue Officers themselves and sometime their decisions about cancellation of mutations are set aside by the Civil Courts or High Courts, because the Revenue Officer has no authority/ jurisdiction to cancel any mutation entered and sanctioned on the basis of fraud. The power of cancellation of mutation of gift, sanctioned on the basis of fraud lies with only Civil Court


However, if there are some apparent clerical mistakes in the entries of Revenue Record and there is no element of fraud in it, such entries can be rectified by Revenue Officer. So, the correction of clerical mistakes is something different from cancellation of gift mutation, which is outcome of fraud.


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