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Three Jaish-e-Mohammad militants were killed in the Drach area of Shopian, while a Lashkar-e-Taiba militant was killed in the Moolu area of the south Kashmir district.
Accused Mohammad Nadeem (25) is a native of Uttar Pradesh's Saharanpur district.
This is the second such encounter on the Jammu-Srinagar National Highway this year.
Meanwhile, Rather, a long-time over-ground worker of the JeM, disclosed that he gave shelter at his home to Jaish terrorist and IED expert Mohammad Umar after he came to Kashmir in April-May 2018.
The militants belonging to Pakistan-based Jaish-e-Mohammad opened fire when the truck they were travelling was intercepted by the security forces.
The threat is reportedly based on a series of telephonic intercepts involving two Jaish commanders from across the border.
Reports from the areas said the heavy firing exchanges were still continuing between the armed forces of both sides.
Raids have been conducted by the Special Cell of Delhi Police in Delhi's Jamia Nagar, Jafrabad, Chandni Chowk and Okhla.
Pakistan had fully closed its airspace in February after an Indian Air Force strike on a Jaish-e-Mohammed (JeM) terror camp in Balakot.
Admiral Singh said all stakeholders in coastal security are ensuring that there is no intrusion from the sea.