Both sides accused each other of initiating hostilities in the first deadly incident in crossing the de facto border in the Himalayan region in more than three months.
The incident comes as tentative diplomatic steps are being taken to make peace between India and Pakistan have fought two of their three wars over Kashmir, predominantly Muslim - divided between the two and claimed in full by both.
Border fire sporadically through the border known as the Line of Control (LOC) and usually each side accuses the other of starting it.
Pakistan army spokesman Maj. Gen. Athar Abbas told AFP that Pakistani soldiers had been moving between the posts when they got lost in bad weather in the Neelum river valley before the gunfire started.
"There was an exchange of fire between the two sides. This was initiated by the Indian side - completely unprovoked shooting, breaking the ceasefire, and after a search 24 hours their bodies were recovered, "he said.
Indian army spokesman JS Brar said the Pakistanis first shot.
"There was a violation of the ceasefire by Pakistani troops in (North) Keran sector, which dropped our wounded soldier," he told AFP from Indian Kashmir.
Brar said the first shots rang out late Wednesday Pakistani troops had "again resorted to unprovoked firing" on Thursday morning.
"We retaliated," he said.
At first Brar said the fire had ceased, but later said some gunfire continued.
"Intense artillery and mortar fire as it is being used by the other side but not for us," he said, claiming it was the fourth violation of a cease-fire along the border this year.
The wounded soldier was taken to a hospital in the Indian army base in Srinagar, the summer capital of Indian Kashmir, he said, adding he had no knowledge of Pakistani victims.
Abbas said the meeting had been requested by local commanders of India and that the deadly incident was under investigation.
The Kashmir dispute has caused two of the three wars fought by the neighbors since their independence from colonial rule in 1947.
In May, the Indian army said one of its soldiers died when Pakistani snipers allegedly shot across the border, prompting a firefight that destroyed more than a year of calm.
India and Pakistan agreed to a ceasefire along the Line of Control in 2003 and a year later launched talks aimed at brokering regional peace.
The process was suspended by India following the 2008 attacks in Mumbai that killed 166 people and that New Delhi blamed Pakistan-based militants.
Pakistan vehemently denies the allegations in India that helps Islamic militants in disputed Kashmir.
The latest dismissal came after Indian Foreign Minister, SM Krishna, and his Pakistani counterpart, Hina Rabbani Khar, met in New Delhi last month, and both pledged to fight against militancy, boost trade and sustain the process peace.
A Muslim insurgency against New Delhi's government has shaken the Indian zone and left over 47,000 dead since 1989, according to an official count.
Tensions are high along the border areas in the summer. Unlike the harsh winters of the Himalayas, the passes are open, ie the rebels may try to infiltrate.
The incident comes as tentative diplomatic steps are being taken to make peace between India and Pakistan have fought two of their three wars over Kashmir, predominantly Muslim - divided between the two and claimed in full by both.
Border fire sporadically through the border known as the Line of Control (LOC) and usually each side accuses the other of starting it.
Pakistan army spokesman Maj. Gen. Athar Abbas told AFP that Pakistani soldiers had been moving between the posts when they got lost in bad weather in the Neelum river valley before the gunfire started.
"There was an exchange of fire between the two sides. This was initiated by the Indian side - completely unprovoked shooting, breaking the ceasefire, and after a search 24 hours their bodies were recovered, "he said.
Indian army spokesman JS Brar said the Pakistanis first shot.
"There was a violation of the ceasefire by Pakistani troops in (North) Keran sector, which dropped our wounded soldier," he told AFP from Indian Kashmir.
Brar said the first shots rang out late Wednesday Pakistani troops had "again resorted to unprovoked firing" on Thursday morning.
"We retaliated," he said.
At first Brar said the fire had ceased, but later said some gunfire continued.
"Intense artillery and mortar fire as it is being used by the other side but not for us," he said, claiming it was the fourth violation of a cease-fire along the border this year.
The wounded soldier was taken to a hospital in the Indian army base in Srinagar, the summer capital of Indian Kashmir, he said, adding he had no knowledge of Pakistani victims.
Abbas said the meeting had been requested by local commanders of India and that the deadly incident was under investigation.
The Kashmir dispute has caused two of the three wars fought by the neighbors since their independence from colonial rule in 1947.
In May, the Indian army said one of its soldiers died when Pakistani snipers allegedly shot across the border, prompting a firefight that destroyed more than a year of calm.
India and Pakistan agreed to a ceasefire along the Line of Control in 2003 and a year later launched talks aimed at brokering regional peace.
The process was suspended by India following the 2008 attacks in Mumbai that killed 166 people and that New Delhi blamed Pakistan-based militants.
Pakistan vehemently denies the allegations in India that helps Islamic militants in disputed Kashmir.
The latest dismissal came after Indian Foreign Minister, SM Krishna, and his Pakistani counterpart, Hina Rabbani Khar, met in New Delhi last month, and both pledged to fight against militancy, boost trade and sustain the process peace.
A Muslim insurgency against New Delhi's government has shaken the Indian zone and left over 47,000 dead since 1989, according to an official count.
Tensions are high along the border areas in the summer. Unlike the harsh winters of the Himalayas, the passes are open, ie the rebels may try to infiltrate.
