Indian Army soldiers patrol the Line of Control at Pallanwala in Akhnoor ahead of Independence Day.
This is the second such incident along the India-Pakistan border in Jammu division in two days.
The sources said two group of seven to eight terrorists, are believed to have engineered the attack.
The fierce gunfight was going on in the area with the induction of more troops to neutralise two terrorists trapped at the spot, they said.
Two terrorists, including a top Lashkar-e-Tayiba (LeT) commander trained in Afghanistan, were killed in a gunfight with security forces on Thursday in Jammu and Kashmir's Rajouri district, officials said.
A statement from the Army's Northern Command said its personnel have been conducting 'relentless intelligence-based operations to flush out a group of terrorists involved in an ambush on an Army truck in the Tota Gali area of Bhata Dhurian in Jammu region last month'.
Security forces on Friday launched a massive cordon and search operation in the forest area of Jammu and Kashmir's Poonch district, a day after five army personnel were killed and two others injured in a terrorist attack.
A few persons were questioned about the suspected movements of terrorists. However, security forces are yet to establish any fresh contact with the ultras, they said.
He said over 30 people were detained for questioning during searches in 30 Rohingya settlements in Jammu city.
The development comes in view of twin terror attacks in Jammu and Kashmir's Rajouri district in which six people of a minority community including two children were killed and 11 others were injured.
Defence Minister Rajnath Singh on Wednesday assured justice to the families of three civilians who were found dead last week after being allegedly picked up by the Army following an ambush on two of Army vehicles in Jammu and Kashmir's Poonch district.
The Bharatiya Janata Party termed Mufti's temple visit a "political gimmick."
Another soldier was seriously injured in the incident and was evacuated immediately to the Army Hospital at Rajouri, they said.
The Jammu and Kashmir administration on Saturday announced compensation and jobs to the kin of the three civilians who were found dead in Poonch district as a massive search operation was underway to track down terrorists behind the recent ambush on two Army vehicles that left five soldiers dead.
The infiltration bid was scuttled in Balakot sector on Saturday evening and a massive search operation is still underway, the spokesman said.
The party in an editorial in its mouthpiece 'Saamana' said even after the revocation of Article 370, which gave special status to Jammu and Kashmir, violence continues in the Kashmir Valley and there is still no peace there.
Army's counter-terrorism operation in the Nar Khas forest area of Poonch continued on Friday morning.
Officials said the infiltration attempt by three suspected terrorists was foiled in Shahpur sector around 2.15 am when troops guarding the LoC picked up their movement and engaged them in a gunfight.
A terrorist was killed and another was most likely injured on Saturday in an ongoing operation in the densely forested area of Rajouri district in Jammu and Kashmir, Army said.
The planned phased withdrawal of the Army from certain areas of the Jammu region has been shelved "indefinitely" in view of terror attacks being orchestrated from across the border, officials said in Srinagar.
After tracking the movement at about 1.30 am, the spokesperson said an Army ambush, on challenging them, was fired upon and in the retaliatory firefight some terrorists have been hit.
Several counter-terrorist operations and encounters have taken place in the twin border districts of Rajouri and Poonch this year.
The recent ambush of an Army truck in Jammu and Kashmir's Poonch bears a "striking resemblance" to a terrorist attack on a police vehicle in neighbouring Rajouri district 22 years ago, security officials have said, expressing serious concerns.
The Army has foiled an infiltration bid along the Line of Control in Jammu and Kashmir's Poonch district and has killed a Pakistani terrorist, a defence spokesperson said on Friday.
A total of 26 Army personnel, including three officers and five paratroopers, and seven civilians have been killed in eight terror attacks since October 11, 2021 in the twin districts.
His elder brother Om Prakash Chettri, who recently retired from the Army, said Siddhant was passionate only about serving the nation.
The body of a junior commissioned officer was retrieved from a stream in the Poshana area of Surankote late Saturday evening, while the body of a second soldier was found this morning as the water level started receding in the district.
The Foreign Office on Monday summoned the Indian Charge d'Affaires (Cd'A) in Islamabad to lodge a protest over the alleged killing of a Pakistani citizen, who had infiltrated into Jammu and Kashmir to attack an army post.
A self-styled divisional commander of the Hizbul Mujahideen was killed along with his bodyguard as security forces foiled an infiltration attempt and a conspiracy by the proscribed outfit to revive its activities in Jammu and Kashmir's Poonch district early on Monday, officials said.
Despite the national capital recording its best air quality on Diwali day in eight years, pollution levels may rise due to low night temperatures and sporadic burning of firecrackers though there is a ban on their manufacture, storage, sale and use within the city.
Ten people died and 28 more were injured when an overcrowded mini-bus plunged into a deep gorge in Jammu and Kashmir's Poonch district on Wednesday, officials said in Jammu.
The entire area has been cordoned off while drones and sniffer dogs are being used to sniff out the terrorists that might be hiding in the area, they said.
The incident took place around 3:30 pm at the Devika Ghat community centre in the district.
The intense shelling from across the border also prompted the authorities to suspend class work in nearly half a dozen government-run schools falling within the firing range in Poonch district.
The Pakistani troops were seen firing mortars and missiles from civilian houses, using villagers as human shields. The Pakistani army used heavy weaponry, firing 120-mm mortar targeting civilian hamlets.
The first phase of the infrastructure renovation and creation of some new ones has been recently completed on a stretch of 26 kilometres along the front in Jammu while another 33 kilometres in the same region is being carried out, official sources told PTI.
The JCO was injured in the firing at around 1.30 pm and was taken to a military hospital, where he succumbed to the injuries, they said. The civilian, Mohmmad Rashid has been shifted to GMC hospital in Jammu for specialised treatment, the officials said.
A senior army officer on Monday cautioned youngsters against drug abuse saying, 'The enemy nation is using narcotics as a weapon to destroy our coming generations.'
The Northern Railways said it has cancelled around 17 trains and diverted around 12 others, while traffic has been suspended at four locations due to waterlogging.
The security forces unearthed this information while interrogating the members of the twin modules busted by the police in Rajouri recently.