The leader of Pakistani-controlled Kashmir is warning India is risking a major confrontation after increased fighting.
Sardar Sikandar Hayyat is accusing India of "misadventure".
The Pakistani army said its forces had beaten back an Indian drive to set up a new military position in the Neelum Valley region.
It claims to have inflicted "considerable casualties" in the fighting 50 miles north of Muzaffarabad, the capital of Pakistani Kashmir.
The army says forces attacked because they feared the new post would endanger their own positions.
A spokesman in Muzaffarabad said a Pakistani major was killed by Indian mortar fire in the Neelum Valley and that several civilians were wounded in fighting in the region.
The Indian television network Star reported four Indian soldiers were killed by artillery and mortar fire in the Kupwara region about 40 miles northwest of Srinagar, the summer capital of Indian-controlled Kashmir.