Eid is an Arabic word which means "a day which returns often."
Eid-ul-Fitr is celebrated on the 1st day of the month of Shawwal. The month of Shawwal start after the month of fasting, that is why it is also called the festival of the breaking of the fast. Fasting in the month of Ramadhan is one of the five pillars of Islam. It is, therefore, a practical requirement of the faith and is regarded as and act of devotion.
While Eid is an occasion for joy and happiness, it is certainly not an occasion to indulge in frivolity, over-eating and mere pursuit of pleasure. The main purpose is always to seek the pleasure of Allah almighty by glorifying Him and rendering thanks to Him for having enabled them to perform their duties duly.
Sadaqat-ul-Fitr or Fitrana
On such an auspicious and festive occasion, Muslims are specially reminded of their obligations towards the poorer section of society. A special contribution called 'Sadaqat-ul-Fitr' or 'Fitrana' is fixed for this purpose. The contribution should be paid by the head of the family on behalf of all the members of the family. It is desireable to pay this contribution before the Eid service in order to enable the poor to join in the festivities of the day.