The veteron actor was unable to attend the award ceremony in Delhi because of his ill-health, therefore, he would be handed over the award at a function at Prithvi Theatre in suburban Mumbai.
The entire Kapoor family is expected to attend the ceremony besides several celebrities from the film industry.
Born in 1938, Kapoor hit the spotlight from the age of four acting in plays directed and produced by his father, while travelling with Prithvi Theatre. He started acting in films as a child in the late 1940s.
His best known performances as child artist were in "Aag" (1948) and "Awaara" (1951), where he played the younger version of the character played by Raj Kapoor.
Shashi Kapoor also worked as assistant director in the 1950s.
Kapoor made his debut as a leading man in the 1961 film "Dharmputra" and went on to appear in more than 116 films during 60s, 70s and until the mid 80s.
Some of his memorable films include "Deewar", "Kabhie Kabhie", "Namak Halal", "Kaala Pathar" and others.
The 77-year-old actor, who is wheelchair bound and has been ailing from kidney problems, is the third from his family to get the award, after father Prithvi Raj Kapoor and elder brother Raj Kapoor.
He was honoured with Padma Bhushan in 2011.