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Two terrorists were also killed in the encounter at the Chanjmulla area of Handwara, which is part of north Kashmir's Kupwara district.
The cross-border shelling was continuing when last reports were received, he said, adding further details are awaited.
Earlier, only access to white-listed sites was allowed after the services were restored for a week on January 25 and subsequently extended from time to time.
Prohibitory orders, banning the assembly of more than four persons, were imposed on Monday and will continue to be in force till March 24.
Internet services were suspended on August 4, a day before Article 370 – which provided the special status to J&K - was revoked.
The BJP will take out 500 rallies across the country, beginning Saturday to reach out to three crore people to counteract what Amit Shah believes is a misinformation campaign by the Opposition.
Ten kids have died in the last three days, as eight kids died on December 30 and 31 and two more kids died on January 1 and 2.
India are struggling after an impressive goalless draw against Asian champions Qatar as they needed late equalisers in their identical 1-1 draws against lower-ranked Bangladesh and Afghanistan.
Kashmir Valley, including Srinagar City, was reeling under winter chill and witnessed the season's first snowfall earlier this month.
Prudent Trust is backed by top corporate houses including Bharti Group, Hero MoroCorp, Jubilant Foodworks, Orient Cement, DLF, JK Tyres, among others.