Five soldiers including a Major suffered injuries and evacuated to military hospital.
The statement said that the dead include an Indian army officer and that Indian soldiers retaliated "strongly and effectively".
Major Moharkar Prafulla Ambadas and three jawans were injured in the attack seriously who later succumbed to injuries.
The soldiers belonged to 2 Sikh Regment under 120 Infantry Brigade Battalion.
A defence spokesman said Pakistani troops targeted the Army patrol at Brat Galla in Keri sector at around 1215 hours.
Responding to the gravest provocation, the Indian Army gave befitting reply to the Pakistan Army escalating tension in the region.
Two other personnel also sustained injuries in the firing.
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"Major Ambadas, Lance Naik Gurmail and Sepoy Pargat were courageous and honest soldiers."The nation will always remain indebted to them for their supreme sacrifice and devotion to duty", an Army statement said".
Major Ambadas, 32, belonged to Bhandara, Maharashtra and is survived by wife Ms Avoli Moharkar.
Also in Siachen glacier in northern Kashmir, Indian and Pakistani troops have fought intermittently since 1984.
The skirmishes have led to killings of soldiers as well as civilians.
At least four Indian soldiers were killed on Saturday in Pakistani firing along the highly militarised de facto border that divides the disputed region of Kashmir between the nuclear-armed rivals, Indian officials said.
The Chief Minister has conveyed her heartfelt sympathies to their families.
Jammu and Kashmir Deputy Chief Minister Nirmal Singh paid rich tributes to the slain soldiers and condemned Pakistan for the ceasefire violation. 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.
Singh offered condolences with the bereaved families and prayed for eternal peace to their departed souls.