The actor was suffering from age-related illnesses and breathed his last at the age of 79. He said that his films like Sharmilee, Kabhi Kabhi, Kala Patthar, Deewar, Satyam Shivam Sundaram and Trishul were very popular.
Shashi Kapoor was diagnosed with a chest infection in 2014 and was admitted to the intensive care unit (ICU) at the Kokilaben Dhirubhai Ambani Hospital after he complained of acute cough and breathlessness.
Shashi is survived by his daughter Sanjana Kapoor and his two sons Kunal and Karan.
Shashi Kapoor was the third and youngest son of Prithviraj Kapoor.
He was honored with the Padma Bhushan in 2011 and received cinema's prestigious Dada Saheb Phalke award in 2015.
Kapoor has been part of several global projects and his contribution to theatre besides Hindi cinema would always be remembered.
Shashi was one of the most renowned actors, who displayed his acting acumen in hundreds of films, starting from the era of the 60s. His wife Jennifer Kendal (sister of actress Felicity Kendal) had died in 1984.
He entered the Bollywood as a child artist in the late 1940s and appeared in Sangram (1950) and Dana Paani (1953).
In 1965, he appeared in films such as Waqt, directed by Yash Chopra and Jab Jab Phool Khile, both blockbusters, but for the most part his films were routine, frothy confections of that period, shot in the hills and involving little more than romancing the heroine.
The actor had a remarkable bonding with fellow veteran actor Amitabh Bachchan, with whom he worked in around 12 films.
One of the foremost actors from the Kapoor clan of Bollywood, he had acted in a large number of Hindi films besides in a few English-language films. Mr Kumar in his condolence message said that Mr Kapoor's death had left a great void in the cinema world, which would be hard to fill.