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“Zakat” is one of the five pillars of Islam. It is also stated that it is one of the main components in Islamic finance. Its aim is to balance wealth distribution in the country fairly. Zakat is interpreted as almsgivings to the poor and the “needy” and for payers; it is the purification of their souls through helping the needy and a way of restraining from greed and arrogance. Legally, “Zakat means the transfer of ownership of specific wealth to the specific individual or individuals under the specific conditions” . This article discusses early zakat developments and it is divided into 1. introduction 2. The Law of Zakat during the lifetime of the Prophet (S.A.W.) 2. Zakat practices during the period of the Khulafah Al-Rashdin.
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