The attack comes in less than 24 hours when militants of banned Hizbul Mujahideen ambushed a BSF convoy at neighbouring Goriwan area at Bijbehara killing three of its personnel.
The US has sought their immediate extradition.
Pakistani troops opened fire with automatic weapons and Rocket Projectile Grenades.
The encounter occurred in the jungles of the east Watlab area in Baramulla district of north Kashmir.
A senior police officer said that militants fired at Imtiyaz Ahmad Nadroo, 25, near his house where a telecom tower is installed.
New Delhi has repeatedly missed opportunities for political engagement in Kashmir in the past. It must seize the next one, says Ajai Shukla.
India should do what we can to ensure that our two friends do not get into a confrontation that is meaningless and ultimately damaging to everyone including us.
Bukhari, who was in his 50s, was leaving his office in Press Enclave in the city centre Lal Chowk for an Iftar when he was shot, officials said.
Nabeel Ahmed Wani, the topper of the All India Examination for BSF Assistant Commandant (Works) last year, has written to the government alleging that terrorists are threatening him and his sister.
Pro-Pakistan militant outfits Lashkar-e-Toiba and Hizbul Mujahideen have borne the brunt losing 24 commanders, including three divisional commanders and 13 district commanders, according to statistics compiled by the army.
While they were invited with protests at Geelani's home, they were turned away by Yasin Malik, who was lodged in jail.
Curfew was lifted on Tuesday across Kashmir, except from six police station areas of Srinagar, in view of the improving situation, even as normal life remained disrupted in the Valley for the 74th straight day.
A police official said the curbs have been imposed to maintain law and order in view of the separatists call for a march to the three districts of Baramulla, Pulwama and Srinagar.
Masood was the financial chief and senior commander.
We dedicate this Eid to the supreme sacrifices of Kashmiri people and we will continue doing so till the Kashmir issue is not resolved according to their (Kashmiri people) wishes," Nawaz Sharif said.
India, Pakistan exchange lists of wanted persons
It was suspected that the scholar from Tikipora in Lolab area might have joined the Hizbul Mujahideen.
The official said five civilians received bullet injuries in the cross-firing near the gunfight site.
Restrictions on the assembly of people would remain in force across the Valley to maintain law and order.
Two militants belonging to Hizbul Mujahideen were shot dead in an encounter in Doda district of Jammu and Kashmir early Tuesday, official sources said in Jammu.
Clashes were reported from a number of places in Srinagar city and parts of Budgam district but nobody was hurt in these incidents, police said.
Wani said he also asked Sri Sri to use his influence in finding a solution to Kashmir problem.
Seven people including Altaf Ahmed Shah, the son-in-law of hardline separatist leader Syed Ali Shah Geelani, were arrested on Monday by the National Investigation Agency in connection with its probe into the funding of terror and subversive activities in the Kashmir Valley, officials said.
The meeting comes close on the heels of a clear message from the Centre to the chief minister to control the growing unrest in the state.
Thirteen people, including six Pakistani intruders and a self-styled company commander of the Hizbul Mujahideen, were killed in separate militancy-related incidents in Jammu and Kashmir, where troops foiled two major infiltration bids along the LoC.
Curfew is in force in five police station areas of downtown city and Batamaloo and Maisuma areas in uptown, a police official said.
Five cases, including that of sedition, have been registered against three top Baloch nationalist leaders in Pakistan for allegedly backing Prime Minister Narendra Modi's supportive words on Balochistan in his Independence Day speech.
Normal life remained paralysed for the 45th consecutive day due to curfew, restrictions and separatist sponsored strike following Wani's killing in an encounter with security forces.
'Many said his visit was very risky. But mercifully, Air Force One has taken off from Delhi without Mr Trump stepping on anybody's toes,' notes Ambassador T P Sreenivasan.
The CRPF told the court that if the pellet gun option was withdrawn they would have to use rifles, causing more fatalities.
An official said restrictions on assembly of four or more people also continued to remain force in rest of the Valley as a precautionary measure to maintain law and order.
Immediately after Modi delivered his speech, Omar merely tweeted "finally" but, in a subsequent tweet, voiced his disagreement with Modi's view.
Gami, whose family was killed by militants, used to be a special police officer.
The home minister will reach Islamabad on Wednesday and return to New Delhi the next day after attending the 7th meeting of SAARC.
Hizbul Mujahideen Section Commander Liaquat Hussain Bhat alias Minta informed about the consignment during interrogation, the sources added.
'Every way ends on the negotiating tableĀ We welcome and fully support the talks between Government of India and Hurriyat Conference,' Mohammad Akbar Bhat said.
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