"Eid-ul-Fitr will now be celebrated on Monday," a spokesman of the Grand Mufti's office said.
Muslims follow the lunar calendar and the end of every month is determined by the appearance of the crescent.
The biggest Eid congregation in the valley is expected to take place at Eidgah where Mirwaiz Umer Farooq, in his capacity as the chief preacher, will deliver the Eid sermon.
The Hazratbal shrine, Tourist Reception Centre ground and Jenab Sahib Soura are also expected to witness thousands of people attending the Eid prayers.
The Divisional Administration of Kashmir has finalised all the arrangements for the Eid celebrations, including public transport facility for the devotees.
A 2000-car parking lot has been set up in the heart of the city for the convenience of those attending prayers around Polo ground.
Meanwhile ahead of the Eid festivities, people in the Valley withdrew around Rs 170 crore from the Jammu and Kashmir Bank in the past seven days, a bank official said.