Mumtaz was born in Bombay (now Mumbai) to Abdul Saleem Askari, who was a dry-fruit vendor, and Shadi Habib Agha, on 31 July 1947. Mumtaz’s parents who were of Irani people, separated soon after her first birthday, and her father divorced her mother, when she was 16 years old and remarried then moved to Hyderabad. Her mother also remarried, young Mumtaz was brought up by grandmother, mother and aunt. She has an elder sister, Malika, and two step-brothers, Shazhath and Shah Rukh Askari, who live in Mumbai. She is the cousin of actor Roopesh Kumar.