"Pakistani troops fired at our positions in Mendhar sector of the LoC today (Tuesday) morning," defence spokesman Col. R.K. Kalia told IANS.
"They used small arms, automatics and infantry mortars to target our positions. Our troops retaliated with same calibre weapons.
"The firing started at 8.40 a.m. and till last reports came in, exchange of fire was still going on," he said.
Pakistan has been violating the ceasefire since Sunday in Poonch district.
A ceasefire agreement signed by the two neighbours in November 2003 had brought normalcy in the lives of thousands of people living close to the border.
India has accused Pakistan of unprovoked violation of the ceasefire agreement since the beginning of the year.
Last week, India's External Affairs Minister Salman Khurshid and Pakistani prime minister's adviser on foreign affairs and national security, Sartaj Aziz, met in Bishkek, Kyrgyzstan, and agreed to respect the LoC ceasefire agreement.
Just two days after the meet, Pakistan violated the ceasefire.
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