India says its troops crossed the so-called Line of Control into Kashmir territory administered by Pakistan, and carried out what it calls surgical strikes against terrorist targets.
It claims the strikes killed people suspected of preparing to carry out attacks on major cities in the part of the Himalayan region it controls.
Pakistan has confirmed two of its soldiers were killed, but in an exchange of fire that it characterised as a regular cross-border incident.
Pakistani army spokesman, Lieutenant-General Asim Saleem Bajwa, says India's statement was designed to stoke tensions between the two countries, which both claim a right over Kashmir in its entirety.