Four persons died in Keran about 140 km northwest of Srinagar, while another was killed in the Uri district.
Indian police claimed the shelling was unprovoked and the continued well through the night. The Indian forces returned the fire.
Exchange of fire power across the international borders is common between India and Pakistan. Despite a recent thaw in relations, the two have been long standing rivals and have fought three wars over the vexed issue of Kashmir.
Some 150 people were killed on both sides in fire exchanges last year.
Pakistan had on Wednesday alleged that a woman had been killed and a man injured when Indian troops shelled villages in Pakistani-administered Kashmir.
The casualties occurred in Chakothi sector, some 60 km south of the Pakistani city of Muzaffarabad.