It is said that the attackers had mutilated the body of one soldier in the Machil sector.
Earlier, Indian Army spokesperson Col Rajesh Kalia had told the BBC that '"Retribution will be heavy for this cowardly act.'
However, he had not specified whether the soldiers were attacked by Pakistani soldiers or militants fighting against Indian rule.
Tensions over the long-running dispute have intensified after an Indian army base was attacked in September.
Both India and Pakistan accuse each other of violating the 2003 ceasefire agreement.
(Excerpts from the BBC World Service)