The Padma award is given to people from different fields of activities like art, literature and education, sports, medicine, social work, science and engineering, public affairs, civil services and trade and industry. However, this award is not given posthumously. But Padma Awards Committee, who decides the recipients of this award, finds Rajesh Khanna 's case exceptional and highly deserving. Hence, there are reports that late Rajesh Khanna would be conferred the Padma Vibhushan award. However, Prime Minister will take the final decision.

Apart from Rajesh Khanna , Ramesh Sippy (Director of Sholay ) and Kailash Kher (Singer) would also be awarded Padma awards. However, Rajesh Khanna would be given Padma Vibhushan Awards (Padma Vibhushan is the highest category among the Padma awards) whereas Ramesh Sippy and Kailash Kher would be given Padma Sri Awards.

It is reported that these three people will be honoured with the prestigious Padma awards, which will be announced a day prior to 26th January, 2013.