Pakistan accused India of killing three people including a policeman and wounding four others in cross-border firing Monday, at a time of heightened tensions between the nuclear-armed rivals.
The incidents occurred near the border dividing Indian-held Kashmir from the Pakistani sector of the territory.
"A policeman, a man and a woman were killed when Indian troops opened fire across the border in Nakyal sector," local official Zeeshan Nisar said, adding four were wounded.
Nakyal lies on the Line of Control, the de facto border dividing the disputed Himalayan state between India and Pakistan, where firing which started early Monday was still continuing.
Nisar said three people were also wounded in the Neelum Valley by Indian troops.
Adnan Khursheed, another local official, confirmed the firing and casualties.
Separately, six people including two women were wounded in overnight cross-border firing in the Madarpur sector which also damaged 25 houses and three vehicles, local government official Chaudhry Altaf said.
Officials in Nakyal sector say thousands of people have fled their homes due to the firing, though they were unable to confirm precise figures. More than 70 schools have also been closed in Nakyal and Goi sectors, authorities said.
Last week authorities on both sides closed hundreds of schools along frontier areas in the south of the territory when cross-border firing killed 14 residents.
Relations between the two countries have plummeted in recent months, with India blaming Pakistani militants for a raid on an army base in its part of Kashmir in September that killed 19 soldiers.
India said it responded by carrying out strikes across the heavily-militarised border, although Islamabad denies these took place.
Tensions in Indian-administered Kashmir were already high before the army base attack over the July 8 death of a popular militant leader, with nearly 90 people killed in clashes with security forces since then.
