Indian troops targeted a vehicle of Pakistan Army moving along the Neelum river at Athmuqam on Sunday, killing four soldiers.
"The vehicle fell into the river and four soldiers embraced martyrdom in the Line of Control (LoC) ceasefire violation," said Inter-Services Public Relations (ISPR) in a statement.
The body of one soldier has been recovered while search for the other three is underway.
The attack was similar to an earlier assault on a civilian bus in the same area last year, according to the army's media wing.
The ISPR said that Pakistani forces had responded to the ceasefire violation.