why is Eid celebrated?
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The literal meaning of Eid-ul-Fitr is 'festival of breaking the fast'. And since Muslims observe a long fast called Ramadan starting from dawn to dusk for a month, Eid is a celebration of the end of Ramzan. It is also celebrated to acknowledge the start of Shawwal month as per the Islamic calendar.
Explanation:
Eid is meant to be a time of joy and blessing for the entire Muslim community and a time for distributing one's wealth. Charity to the poor is a highly emphasized value in Islam. The Quran says, "Believe in Allah and his messenger, and give charity out of the (substance) that Allah has made you heirs of.