Kapoor was born to actor Pankaj Kapoor and actor/classical dancer Neelima Azeem on February 25, 1981. Kapoor's parents divorced when he was three. After the divorce of his parents, he usually lived with his mother. He shared a good relationship with his father and stepmother Supriya Pathak. He studied in Rajhans Vidyalaya, Mumbai. Kapoor is also a vegetarian. He also has a sister named Sana and a step-brother named Ishaan Kapoor; his brother acted with him in the movie Vaah! Life Ho To Aisi (2005). His maternal grandfather was Anwar Azeem, a noted Marxist journalist and tác giả from Bihar.
While filming Fida, Kapoor began dating Kareena Kapoor. They had dated for three years and then separated during the filming of Jab We Met. According to him, they remained on good terms, with him saying, "I wish her [Kareena] all the happiness in the world. I have great respect for her. She’s a wonderful girl."