A heart patient, Sehgal was admitted to the Max Hospital in south Delhi's Saket area after being diagnosed with pneumonia Wednesday. She died of a heart attack at 4.30 p.m. Thursday.
She was staying here with her daughter, renowned Odissi danseuse Kiran Sehgal.
Her cremation will take place Friday.
In 1994, Sehgal was diagnosed with cancer, but she fought it off and did not let illness or age dampen her spirit.
A theatre veteran, Sehgal was well-versed with the Hindi film industry and is one of the few actors who worked with four generations of Bollywood's famous Kapoor family - Prithviraj Kapoor to Raj Kapoor, Rishi Kapoor to Ranbir Kapoor.
She is best remembered for her appearances in "Bhaji on the Beach" (1992), "Hum Dil De Chuke Sanam", "Bend It Like Beckham" (2002), and "Dil Se..." (1998). And who can forget her role as Amitabh Bachchan's impish mother in "Cheeni Kum"!
Her last big screen appearance was in "Saawariya".
Among several awards, she was honoured with the Padma Shri, Padma Bhushan and Padma Vibhushan.