The veteran matinee star breathed his last at 5.20 p.m. at the Kokilaben Dhirubhai Ambani Hospital on Monday after a period of hospitalisation.
Bollywood celebrities like Amitabh Bachchan, Salim Khan, Shah Rukh Khan, Salman Khan, Aamir Khan, Anil Kapoor, Rishi Kapoor, Randhir Kapoor, Sanjay Dutt, Ranbir Kapoor, Naseeruddin Shah, Nawazuddin Siddiqui, Supriya Pathak, Shakti Kapoor and Suresh Oberoi among others were present at the cremation.
Son of Prithviraj Kapoor and younger brother of Raj Kapoor and Shammi Kapoor, Shashi Kapoor debuted in Bollywood with the 1961 film Dharmputra after working as a child artist.
He was honoured with the Padma Bhushan -- the third highest civilian honour -- by the Government of India in 2011. In 2015, he was bestowed with the Dadasaheb Phalke Award.
He was married to British actress Jennifer Kendal, who died in September 1984.
Shashi Kapoor is survived by daughter Sanjana Kapoor and two sons Kunal and Karan Kapoor.