"Pakistan troops fired at Indian posts in Nowgam sector of North Kashmir at midnight. They also fired mortars. Army at the LoC (line of control) fired back and intermittent firing is going on," the army officer said on condition of anonymity.
Prime Minister Narendra Modi was chairing a meeting of his cabinet committee on security after the Indian army accused Pakistan of breaching a 2003 ceasefire on Wednesday evening. Defence and foreign ministry officials were due to brief shortly in New Delhi.
"The ceasefire violation proves that Pakistan is determined to reject international rules. This will be taken up to all global forums," an aide to Modi told Reuters on condition of anonymity because he was not authorised to speak on the record.
The Pakistani army said two of its soldiers were killed in the firing as tensions between the nuclear-armed neighbours escalate.
No Indian casualties were reported.