India has accused Pakistani troops of killing a civilian and injuring another along the de facto border that divides the disputed region of Kashmir.
Police Inspector General Danish Rana said the civilians came under attack as they were repairing a razor wire fence along the de facto border in the Samba sector of Indian-administered Kashmir on Friday evening.
Indian security sources say New Delhi forces also responded with their own barrage to the firing by Pakistan.
Senior officials in Islamabad have yet to comment on the latest incident of fighting in the volatile region.
Indian and Pakistani forces have been engaged in similar clashes in the disputed valley over the past few months. The two sides have accused each other of provocation and initiating the clashes.
In 2003, India and Pakistan agreed to a ceasefire along the so-called Line of Control (LoC) in Kashmir, and launched peace talks a year later. However, the process was suspended after over 160 people lost their lives in the 2008 Mumbai terrorist attacks, which New Delhi blamed on Pakistan-based militants.
Pakistani PM blames India for ceasefire violations
Pakistani Prime Minister Nawaz Sharif, who is on a visit to the United States, said in a speech to the US Institute of Peace in Washington on Friday that a "cancellation" of talks between New Delhi and Islamabad had been followed by increased ceasefire violations by India along the de facto border in Kashmir.
Sharif also warned that Pakistan would be forced to take "countermeasures" to deter any attack by India. "It (India) has adopted dangerous military doctrines. This will compel Pakistan to take several countermeasures to preserve credible deterrence."
Kashmir lies at the heart of more than 68 years of hostility between India and Pakistan. Both neighbors claim the region in full, but have partial control over it.