A 67-year-old resident, Mangat Ram and a BSF jawan was injured in the firing.
Nine security force personnel were injured in the firing by the terrorists, they said adding five of them succumbed to injuries.
Indian troops did not retaliate to the 'deliberate provocation' to avoid civilian casualties across the border.
Relatives of the three youths, belonging to Dhar Sakri village in Kotranka of Rajouri area in Poonch, had lodged a written missing persons report in the local police station after they lost contact with them on July 17. The three were working as labourers in apple and walnut orchards in Amshipura.
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.
Army troops have scuttled an infiltration bid from across the border and shot dead a Pakistani intruder in Rajouri district along the Line of Control in Jammu and Kashmir.
Army troops on Thursday recovered a huge cache of arms, besides bodies of slain terrorists from the forward area of Keri in Rajouri district.
A suspected militant was killed as the Indian Army foiled an infiltration bid after a fierce gunbattle along the Line of Control (LoC) in Rajouri district of Jammu and Kashmir. Troops guarding the border line in Laam forward area in Nowshera sector observed the movement of some militants around 3.30 pm today and launched a search, Army officials said.
Militancy has plagued the valley since more than two decades and most of the time innocent civilians and children are the victims
The three youths, Mohammad Imtiyaz and Ibrar Ahmed, residents of Kathuni mohalla of Dharsakri village of Rajouri, and Mohammad Ibrar, a resident of Tarkassi village of Rajouri, had left their homes on the pretext of working as labourers in Shopian and went out of contact with their families on July 17.
An army jawan was Tuesday killed in accidental firing in Rajouri district of Jammu and Kashmir, a senior police official said.
All the market places and shops reopened and traffic has resumed as normal in all these districts bringing much relief to the people.
Pakistan troops also fired on forward posts and civilian areas last night in Rajouri.
11 BSF troops have so far been killed in cross-border firing incidents along the IBr in J&K this year.
The repeated skirmishes saw over 4,000 villagers from near borders to government camps at safer places in the district.
Police said situation is under control in the border district of Jammu and Kashmir.
Pakistani troops again targeted Indian posts along the Line of Control in Poonch district of Jammu and Kashmir, drawing a retaliation from Indian troops.
Reasi district of Jammu region recorded 75.20 per cent voting, the highest in the union territory, State Election Commissioner (SEC) K K Sharma said, adding that 50.53 per cent voter turnout was recorded in the third phase of the maiden DDC polls in J-K.
The retaliation also comes after an Indian Army solider was killed in Pakistan firing along the LoC in Jammu and Kashmir's Rajouri district on last Saturday.
Curfew was on Thursday imposed in border town of Rajouri district in view of communal tension there following stone-pelting on a religious procession and subsequent tear gas shelling.
Nine persons were killed and 48 others injured, seven of them critically, when an overloaded minibus skidded off the road and rolled into a gorge in Rajouri district of Jammu and Kashmir.
'I have received Rs 5 lakh from the Jammu and Kashmir administration. Is that the price of my innocent son and others killed in cold blood'
There was a ceasefire violation by Pakistan Army on a forward post in Mankote-Balnoie sector.
There has been firing by Pakistani troops along the LoC in Nowshera sector since 8:45 am, a senior army officer said.
The three terrorists were hiding in various parts of Jammu and Kashmir for the past seven months
Pakistani troops again violated the ceasefire on the Line of Control in the Rajouri district of Jammu region on Saturday night.
Pakistan has been resorting to heavy mortar shelling along LoC in Jammu and Kashmir for the past over one month.
There was suspected movement along the Line of Control (LOC) in forward belt of Keri area in Rajouri sector and a Patrol party was launched in the area immediately on Tuesday, a senior Army official said.
Pakistani troops violated ceasefire by resorting to brief firing on border outposts along the International Border.
Jammu and Kashmir Director General of Police Dilbag Singh told PTI that preliminary information from the scene suggests there was a minor altercation among some young boys, and within seconds, there was a stampede situation.
2 other jawans were injured in Pakistani shelling in Naushera sector of Rajouri district.
The army foiled an infiltration bid shooting dead a militant in an encounter along the Line of Control in Rajouri district on Thursday.
Two top militants of Hizbul Mujahideen were killed on Friday, in a gunbattle with security forces in Rajouri district of Jammu and Kashmir, police officials said.
Zulfikar (12) stepped on a landmine near the Line of Control in Laam area of the district on Tuesday, when he was taking cattle back home, they said adding, he died on the spot.
Fifty-one people, including 46 students and five policemen, were injured in clashes between the police and university student in Rajouri district of Jammu and Kashmir on Sunday, police officials said.
A doctor couple in Rajouri have been questioned by security agencies in connection with the sensational espionage case involving an Indian diplomat, who was arrested on charges of spying for Pakistan.
The nearly 50-hour-long encounter between militants and security forces in Rajouri district ended on Monday in which a Lashkar-e-Tayiba militant and an srmy jawan were killed and three others, including a major, injured.
Acting on a tip-off that some terrorists were hiding in Rajdhani forest belt at Thanamandi, troops of Rashtriya Rifles and police launched a cordon-and-search operation in the area. In the ensusing gunfight, two ultras were killed and a police constable was wounded, said SSP (Rajouri) R K Jalla who supervised the operation.
The Indian Army has been inflicting heavy casualties to Pakistani troops while replying to Pakistani shelling along the LoC in the last few weeks.
Security personnel arrested two aides of banned terrorist organisations Hizbul Mujahideen and Lashkar-e-Tayiba in the Rajouri district on Saturday.