"Pakistan Army initiated unprovoked firing on Indian Army posts in the Krishna Ghati sector at around 12:50 hours today.
Indian Army retaliated strongly and effectively," a defence spokesman said.
In the exchange of fire, Naik Mahendra Chemjung was grievously injured and succumbed to injuries, he added.
Chemjung, 35, belonged to Chilingdin in Nepal and is survived by his wife Nayan Kala Chemjung and a son, the spokesman said.
"Chemjung was a brave and sincere soldier. The nation will always remain indebted to him for the supreme sacrifice and devotion to duty," he added.
Yesterday, two minors were killed and 12 civilians injured in cross-border shelling by Pakistan along the LoC in Poonch district.
Five children were among the injured, the youngest being five-year-old Zobia Kousar, who was airlifted to a hospital in Jammu.