By james art Police said insurgents sprayed bullets at an army vehicle carrying troops near the heavily militarized Line of Control near the resort town of Gulmarg on Thursday evening.
A de facto border divides disputed Kashmir between India and Pakistan, which both claim in full.
Two soldiers and two civilians working as porters with the Indian Army were killed and three other soldiers were injured, police said. One soldier later died in hospital, they said. The military said it was a brief firefight and did not provide other details.
There is no independent confirmation of the incident.
On Sunday, gunmen fatally shot at least seven people and wounded five others working on a strategic tunnel project near another resort town of Sonamarg. Police blamed the attack on militants who have been fighting Indian rule for decades.
Militants in Indian-administered Kashmir have been fighting New Delhi’s rule since 1989. Many Kashmiri Muslims support the rebels’ goal of uniting the territory either under Pakistani rule or as an independent state.
India insists that militants in Kashmir are Pakistan-sponsored terrorism. Pakistan denies the allegations and many Kashmiris believe it is a legitimate freedom struggle.
Tens of thousands of civilians, rebels and government forces have been killed in the conflict.
Nuclear rivals India and Pakistan have fought two of their three wars over Kashmir since gaining independence from British colonial rule in 1947.