India’s army says it has carried out “surgical strikes” against suspected militants along the de-facto border with Pakistan in Kashmir.
The operation was aimed at preventing attacks being planned by Pakistan-based militants, a senior army official said.
He said “significant casualties have been caused to the terrorists and those who are trying to support them”.
Pakistan denies India carried out any strikes and says two of its soldiers were killed in cross-border shelling.
“The notion of surgical strike linked to alleged terrorists’ bases is an illusion being deliberately generated by India to create false effects,” the Pakistani military said in a statement.
Pakistan said its soldiers died in “unprovoked” firing along the Line of Control dividing the disputed region.
Tensions have been high since a militant attack on an Indian army base in Kashmir left 18 soldiers dead earlier this month. India blamed the attack on Pakistan, which denied the claim.
It also confirmed that two of its soldiers had been killed in the exchange of fire.
In a statement, Pakistani Prime Minister Nawaz Sharif “strongly condemned the unprovoked and naked aggression of Indian forces” and vowed that the military was capable of thwarting “any evil design to undermine the sovereignty of Pakistan”.
An Indian army spokesman confirmed that there had been shelling from the Pakistani side of the LoC into the Poonch district of Indian-administered Kashmir.
India has also been on a diplomatic drive to isolate its arch rival since the raid on September 18, that India blamed on a Pakistan-based group called Jaish-e Mohammed.
On Tuesday it said Prime Minister Narendra Modi would not attend the South Asian Association for Regional Cooperation (SAARC) summit in Islamabad in November, in a major snub to its neighbour.
Both India and Pakistan claim the disputed Himalayan region in full, but govern over separate parts of it, divided by the heavily militarised LoC.
The Indian-controlled part of the territory has a Muslim majority and there are a number of armed separatist groups fighting New Delhi.
Tensions had already been high in the region since the Indian army killed a leading Kashmiri separatist in a gunfight in early July, sparking a series of protests that have left more than 80 dead and injured thousands others.