Additional Sessions Judge (ASJ) Rajender Kumar Shastri also imposed a fine of Rs 95,000 on him.
The court said that out of the fine amount, Rs 40,000 would go to the family of Sharma and Rs 20,000 to Head Constable Balwant Singh, who was injured in the encounter.
The court had yesterday reserved its verdict on the quantum of sentence to be awarded to Shahzad after hearing arguments from the prosecution and the defence. The prosecution had sought death penalty while the defence counsel had pleaded for leniency and a chance for reformation of the convict.
Special Public Prosecutor Satwinder Kaur had contended that there was no scope for reformation of Shahzad and equated his case with that of Devenderpal Singh Bhullar and Ajmal Kasab who were awarded death penalty and the same was upheld by the Supreme Court.
On the other hand, Shahzad's advocate Satish Tamta had said death sentence can be awarded only in rarest-of-rare cases and this one did not fall under that category.