Violence has not returned to the district known as the country's sugarcane-belt, but political divisions remain as Hindus typically vote for BJP and Muslims for the opposition
The accident took place in Jammu and Kashmir's Poonch district area on Sunday, the police said. The bus was going from Loran to Poonch, 175 km from state capital Srinagar, reports NDTV news.
The injured have been admitted to a hospital at Mandi.
The driver could have been speeding around the tight turns, the police said, adding it is likely he lost control while turning around a tight bend before skidding off the road.
The bus came to rest on a rocky stream between two hills after falling from the narrow mountain road. It hit the rocks with such force that the roof tore off completely, rescuers who are at the site said. The front part of the bus got separated by the impact and was flung some metres away from the main chassis.