Sabharwal started her career in 1999 with Geeta Rahasya.[5] She has played supporting roles in all three of her movies, among which Vivah has been her most successful movie to date. Besides acting in Bollywood movies, she has also acted in television series, among them Arzoo Hai Tu, Awaz - Dil Se Dil Tak, Jannat, Jhoot Bole Kauwa Kaate and Khushiyan. She usually plays supporting roles in Hindi television programmes. She was seen in Woh Rehne Waali Mehlon Ki, which aired on Sahara One channel. Then, she played the role of Sanju's mother in Shaka Laka Boom Boom. From 2007 to 2008, she played the role of Cynthia in Sahara One's Ghar Ek Sapnaa. In 2008, she appeared in Main Teri Parchhain Hoon on Imagine TV. This role got her fame in Indian Television. In 2007, she was seen in Naaginn, which aired on Zee TV, as Ratna, Triveni's daughter in law.
From 2009 to 2019, she played Rajshri Goyel Maheshwari, the mother of the main lead, Akshara, the grand mother of later main lead, Naira in Yeh Rishta Kya Kehlata Hai on Star Plus. The role brought her much recognition and fame.[6] She won several awards in the category of Best Onscreen Mother. She married her on-screen husband from Yeh Rishta Kya Kehlata Hai, Sanjeev Seth. Lata and her husband, Sanjeev Seth, participated in the Star Plus dance show Nach Baliye 6 in 2013.[7][8]