He was 63, and is survived by his mother, wife and a daughter.
The actor had recently returned to Canada, where he currently resides.
He was hospitalized yesterday following uneasiness and pain, the family said, adding they received news of his demise early this morning.
Chandrashekar rose to fame for his role in 'Edakallu Guddada Mele', directed by Puttanna Kanagal.
He has acted in over 40 films, the last of which was '3 ghante, 30 dina, 30 secondu'.
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Leading Kannada actors like Srinath and Jai Jagadish, besides other film personalities visited the actor's residence here on coming to know of his death
"His service to the state and language through films is immortal," a tweet on the Chief Ministers official twitter handle said.