"In association with an NGO, I have started a fundraiser to help raise money for the terrible situation in Kashmir," the actor, who has featured in films like "Rang De Basanti" and "Luv Shuv Tey Chicken Khurana", tweeted.
"The situation is far worse than u can imagine. And ppl are in need of immediate help. You can help them (sic)," he wrote.
The actor has also shared the link of the site where one can contribute for the people who are trapped and seek help.
The home page of website reads: "Hi guys, I'm Kunal Kapoor. I've been watching the news coverage of the floods in Kashmir and it's saddening, the number of people whose homes and lives have just been wiped out... I want to do something to help them. And I know there are people just like me, who want to help too.
"So please join me. Let's raise funds for the people of Kashmir together. Let's stand by our countrymen and do whatever we can to help them deal with their losses. We can help them gradually rebuild their homes and their lives. We CAN make a difference together."
The funds will go to CARE India, which will distribute survival kits to the affected families and individuals in Jammu and Kashmir.
The kits would include basic amenities for survival such as tarpaulin, mats, hygiene kit (soap, toothbrush, toothpaste, sanitary napkins and disinfectant soaps) and blankets.
Each survival kit costs Rs.5,000 and the actor is looking to gather fund for 100 such kits.
Official reports indicate that over 76,500 people have been rescued in Jammu and Kashmir and relief efforts were on in the flood-hit parts of the state where hundreds still remained trapped even as the flood waters continued to recede Wednesday.