The body will be flown from Lahore to Indian this afternoon, Indian and Pakistani officials said.
Earlier, Pakistan gave clearance for a special Indian flight to take back the body.
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Footage on television showed policemen and staff of Jinnah Hospital loading a plain wooden coffin with the body into an ambulance.
Several vehicles with armed policemen escorted the ambulance from the hospital to Lahore international airport.
Pakistani authorities handed over the body after an autopsy was performed by a medical board.
Samples from the body were sent for forensic tests and the final report on the autopsy is expected to be submitted in two weeks, sources said.
Foolproof security was put in place at Jinnah Hospital for the handing over of the body. Dozens of police commandos were deployed in and around the hospital.
Sarabjit, 49, succumbed early today to injuries sustained during a brutal assault by other inmates of Kot Lakhpat Jail on Friday. He was hit on the head with bricks and cut with knives fashioned from spoons.
The Indian national had spent about 22 years in Pakistani jails after being convicted of alleged involvement in bomb attacks in Punjab province that killed 14 people in 1990.
His mercy petitions were rejected by the courts and former President Pervez Musharraf.
The previous Pakistan People's Party-led government put off Sarabjit's execution for an indefinite period in 2008.
Sarabjit's family says he was the victim of mistaken identity and had mistakenly strayed across the border in an inebriated state.
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