A Padma Vibhushan awardee, Sehgal breathed her last at Max hospital here around 4:30 PM.
"She died of a cardiac arrest this afternoon. She was unwell for last three-four days," daughter Kiran told PTI.
Sehgal would be cremated tomorrow at 11 AM at the Lodhi Road crematorium.
The news was broken in the night by historian Irfan Habib who tweeted, "Just confirmed that Zohra Aapa is no more..."
In another tweet, he said, "Extremely sad to know about d passing away of Zohra Sehgal, a woman who lived a full life on her own terms. Great loss to art and culture. RIP."
Sehgal, a vivacious personality, started her career as a dancer with Uday Shankar in 1935. She had appeared in many Bollywood films as a character actor as well as in English language films besides television series and plays.
Often called the grand old lady of Bollywood, she last appeared in Sanjay Leela Bhansali's "Saawariya" in 2007.
A Padma Shri awardee, she also received the Padma Vibhshan in 2010.