A Pakistani military spokesman said 46 civilians were injured in Indian airstrikes, with 26 killed, including a young girl. Islamabad vowed revenge.
The Indian military also said seven civilians had been killed in Pakistani shelling in Kashmir.
There were multiple reports overnight of Indian and Pakistani forces exchanging fire in several parts of the Line of Contact.
Pakistan claims to have shot down three Indian fighter jets, but India has yet to officially comment on the news.
