The latest violation of the ceasefire agreement took place at a time Chief Minister Mehbooba Mufti was camping in Rajouri district headquarters to address people's grievances, they said.
Among the three soldiers that were killed, one was an Army major and another officer was also injured.
"Initial reports say three soldiers were killed during (a) BAT operation", Vaid told AFP, referring to the "Border Action Teams" that Indian officials say are made up of Pakistani troops and militants and carry out cross-border attacks. The injured soldier has been airlifted to a hospital for treatment.
There was no immediate response from Pakistani authorities to the incident. Hailing from District Karnal, Haryana, Sepoy Pargat Singh, 30, is survived by wife Ramanpreet Kaur and a son. Ceasefire violations along the LoC in 2014 and 2015, for instance, stood at 153 and 152, respectively, while the tally was 228 past year.More news: Mystery donor leaves extremely rare coins in Oklahoma red kettles
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They said army men also returned the fire and targeted Pakistani army posts and bunkers with similar caliber weapons.
The skirmishes have led to killings of soldiers as well as civilians.
Last year, Indian and Pakistani soldiers engaged in some of the worst fighting along the Line of Control since the two countries agreed to the cease-fire accord.
Singh while expressing condolences with the bereaved families, prayed for eternal peace to the departed souls.