"However intermittent firing is continuing at Battal sector of Pakistan's Rawalakot district."
However, the Indian military said that Pakistan started the clash and that Pakistani troops also had fired rockets.
"Indian troops retaliated and a heavy exchange of gunfire was on," IANS, an Indian newswire, cited an army spokesperson as saying.
An Indian soldier was injured in the mortar fire by Pakistani troops, the spokesman said.
Both Pakistan and India control part of Kashmir region. But each side lays claim over the whole of the territory.
The rival south Asian nations have fought two of their three wars over Kashmir since their independence from Britain in 1947.
They signed a Kashmir ceasefire in late 2003 which has generally held except for occasional exchanges of fire.