Indian and Pakistani troops resorted to heavy firing on Sunday along the Line of Control (LoC) in Jammu and Kashmir's Rajouri district.
"Pakistan Army initiated indiscriminate firing and shelling on our positions on the LoC in the Rajouri sector," Defence Ministry spokesman Lieutenant Colonel Manish Mehta told IANS.
They are using small arms, automatics and mortars, he said.
"Our forces are effectively retaliating. The firing is presently ongoing," Mehta added.
Two civilians were killed and three others injured in Rajouri's Naushera sector due to the shelling from the Pakistani side.
Authorities have closed all schools indefinitely in the areas close to the LoC.
Since 12 May, dozens of families from the border villages have left their homes to avoid the indiscriminate shelling.