"I am really very happy. I am obliged that the government has recognised my father-in-law's work. I am extremely happy," said Akshay, who is married to Rajesh Khanna's elder daughter Twinkle.
The awards were announced Friday.
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Rajesh Khanna, fondly known as Kaka, began his career with "Aakhri Khat" in 1966. In a career spanning five decades, he became a superstar like no other with hits like "Aradhana", "Do Raaste", "Safar" and "Anand".
He passed away in July 2012 following prolonged illness. He was 69.