The exchange took place at five Border Personnel Meeting points along the LAC, the sources added.
It was for the first time that the high-level military talks on the lingering border row spanned two days.
The talks are following up the outcome of the 19th round of Corps Commander-level talks held between the two sides on August 13-14 at the Chushul Moldo border meeting point.
The ministry of external affairs on Wednesday said the talks were held in an "open and constructive manner" for an early and mutually acceptable resolution of the remaining issues.
The MEA said the two sides shared their perspectives on the matter in the talks held in a friendly and cordial atmosphere.
This meeting is taking place after a gap of around four months.
India and China on Monday held a fresh round of military talks with a focus on disengagement of troops in the remaining friction points in eastern Ladakh and ease overall tensions in the region.
India and China held two days of military talks in an "open and constructive manner" for an early and mutually acceptable resolution of the remaining issues along the Line of Actual Control in eastern Ladakh and agreed to maintain peace on the ground.
After a gap of over three months, India and China on Wednesday are holding another round of high-level military talks to resolve the 20-month-long military standoff in the remaining friction points in eastern Ladakh, sources in the security establishment said.
China on Wednesday said the latest round of the border talks with India was held in a "candid and pragmatic atmosphere" and the two sides had a "positive, constructive and in-depth discussion" on the resolution of the remaining issues along the Line of Actual Control in the Western Sector.
India on Monday pressed for early disengagement of troops in remaining friction points in eastern Ladakh during a fresh round of high-level military talks with China, people familiar with the matter said.
The sources said the soldier was handed back to China at the Chushul-Moldo border point in eastern Ladakh at 10.10 am.
China said on Tuesday that the current situation on the border areas with India was "stable" as it confirmed that the 14th round of Corps Commander-level talks to discuss the disengagement process in the remaining friction points in eastern Ladakh will be held on Wednesday.
India is set to press for early disengagement of troops from the remaining friction points in eastern Ladakh at a fresh round of high-level military talks with China on August 14, people familiar with the matter said on Saturday.
The last meeting between the two sides at the Corps Commander level was held in December last year.
Prime Minister Narendra Modi's bilateral meetings on the sidelines of the BRICS summit in Johannesburg are being finalised, Foreign Secretary Vinay Kwatra said on Monday but did not give a direct reply on the possibility of a meeting between Modi and Chinese President Xi Jinping.
In the fresh round of talks, the Indian side is expected to press for disengagement of troops as soon as possible in all the remaining friction points besides seeking resolution of issues in Depsang Bulge and Demchok.
The 16th round of military talks between India and China on the lingering border standoff in eastern Ladakh will be held on July 17 on the Indian side of the Line of Actual Control (LAC) in the region, official sources said on Friday.
India and China agreed during their military talks on Sunday to stay in close touch and work out a mutually acceptable solution to the "remaining issues" in eastern Ladakh at the earliest, but there was no indication of clear forward movement in ending their three-year-long border standoff.
The Indian Army said the soldier, a Corporal in the Chinese People's Liberation Army(PLA), has been identified as Wang Ya Long and he will be returned to the Chinese military at the Chushul-Moldo border point after completion of formalities.
Chinese foreign ministry spokesperson Mao Ning told the media in Beijing on Monday that the two sides held an in-depth exchange of views on expediting the resolution of relevant issues.
The actions on the ground would be confirmed and are expected to be followed up soon.
India is looking forward to a "constructive" dialogue with China to resolve issues in remaining friction points in eastern Ladakh, sources in the security establishment said on Monday ahead of the 14th round of military talks between the two sides on the 20-month row.
India and China on Friday are holding another round of high-level military dialogue to resolve the 22-month-long standoff in some friction points in eastern Ladakh, two months after the last round of such talks failed to yield any significant outcome.
The structure and the level at which the hotline would be set up is likely to come up for discussion in future meetings between the two countries at the military level, they said.
The Chinese aircraft have been regularly flying close to the LAC in the last three to four weeks which is seen as an attempt to probe the Indian defence mechanism in the area.
There was no official word on the outcome of the talks.
India and China held a special round of military talks on Tuesday at the Chushul-Moldo border meeting point in Eastern Ladakh to discuss air space violations and provocations by the Chinese side in that area in the last 45 days.
China on Tuesday announced that its Defence Minister General Li Shangfu will visit India this week to attend the meeting of SCO defence ministers from April 27 during which he is expected to hold talks with his Indian counterpart Rajnath Singh on ending the prolonged eastern Ladakh standoff which has severely strained bilateral ties.
India and Chinese troops on Saturday exchanged sweets and greetings at 10 border posts along the Line of Actual Control (LAC) including in eastern Ladakh to mark the New Year, officials said.
India and China will complete the disengagement process in the Gogra-Hotsprings area in eastern Ladakh by September 12, the External Affairs Ministry said on Friday.
A joint statement released on Thursday said both sides exchanged views in an 'open and constructive' manner to resolve the 'relevant issues' and that it was agreed to maintain 'security and stability' on the ground in the region.
The talks till now have resulted in the resolution of issues in North and South Bank of Pangong Tso, Galwan and Gogra Hot Spring areas.
A day after the nearly 12-and-half-hour talks, the two sides, in a joint statement on Monday, reaffirmed that the resolution of the pending issues would help in the restoration of peace and tranquility along the Line of Actual Control (LAC) in the region and enable progress in bilateral relations.
The fresh round of Corps Commander-level talks took place at the Chushul-Moldo border point on the Chinese side of the Line of Actual Control in eastern Ladakh, they said.
The Indian side is expected to seek disengagement as soon as possible in the remaining friction points besides pressing for resolution of issues in Depsang Bulge and Demchok.
A day after the nearly 13-hour meeting, the two sides in a joint statement on Saturday reaffirmed that such a resolution would help restore peace and tranquillity along the Line of Actual Control (LAC) in eastern Ladakh and facilitate progress in bilateral relations.
Indian Army Chief General M M Naravane had said on Wednesday that India was hopeful of resolving issues related to disengagement at Patrolling Point 15 (Hot Springs) in eastern Ladakh in the 14th round of talks.
The remarks of White House Press Secretary Jen Psaki came ahead of the 14th round of military-level talks between India and China on the 20-month row in eastern Ladakh.
'We hope this round of meeting, on the basis of previous meetings, can move forward, further enlarge consensus, narrow differences and work for a solution that is acceptable to both parties,' the spokesperson said in updated comments posted on the ministry's website.