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.[16] 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 author from Bihar.[17]
While filming Fida, Kapoor began dating Kareena Kapoor. They had dated for three years and then separated during the filming of Jab We Met.[18][19] 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."[20]