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
An army patrol noticed suspicious movement along the LOC in the early hours of Sunday, Defence Ministry spokesman Colonel Rajesh Kalia said.
"Army troops were rushed to the area and militant movement was tracked by surveillance devices. A heavy gun battle followed in which three militants were killed," he said.
Four army soldiers were killed in the gunbattle, he said.
This is the highest number of army casualties along the Line of Control in Kashmir since April this year. Five Indian troops and an equal number of militants were killed in April this year when armed militants were challenged by Indian troops in the area.