The soldier was killed and three people injured where troops initially came under heavy fire from across the border with Pakistan on Friday, Indian officials said.
India's foreign minister is scheduled to visit Pakistan later this month to review a slow-moving peace process started by the nuclear-armed rivals in January 2004.
The two countries used to routinely exchange artillery and machine gun fire until a November 2003 truce.
Violence has sharply dropped in Indian-administered Kashmir since the launch of the peace process.
However, Indian officials say fighters are still trying to cross into the Himalayan region to sustain a resistance to Indian rule that first erupted in 1989.
The two countries are far from resolving the dispute over Kashmir, which has triggered two of their three wars.