The film, which is nominated in the Best Foreign Language Documentary and Best Director categories, will be screened at the film festival on Tuesday.
"Aunty Sudha Aunty Radha" follows the filmmaker's aunts, aged 86 and 93.
"This is a personal, passion project for me, which on the face of it is about two old women in the autumn of their lives, but really it could be said they're in the spring of their lives! I'm excited that it's premiering in Madrid. Old age isn't limited to any one part of the world, is it? It's universal, and when two ladies on walkers -- one of them toothless -- have an infectious zest for life, this joy should be shared with the world, I think!" said Chandra.
Tanuja is known for helming films like "Sangharsh" and "Qarib Qarib Singlle".