Indian and Pakistani troops deployed along the Line of Control in Kashmir exchanged heavy fire, local media reports citing sources in the Indian military.
The alleged ceasefire violation took place in the Sunderbani Sector along Line of Control at around 22:15 (local time), with Pakistani forces firing small arms and using mortars, according to an Indian army source.
"The Indian Army retaliated befittingly," the source added.
Earlier, Pakistan announced that it had partially closed its airspace for Indian flights until 5 September.
The Pakistani foreign ministry also announced the expulsion of the Indian envoy from the country, adding that Pakistan won't be sending its envoy to Delhi.
On Monday, India revoked Article 370 of the constitution which protected the special status of Jammu and Kashmir, requiring the mandatory approval of most of the laws adopted by the Indian parliament in the local assembly.
The Indian government plans to split the Ladakh region from Jammu and Kashmir and grant it the status of a union territory, which means it would be directly controlled by the federal government. The remainder of the state will become a second union territory. However, the Ladakh region will not have its own legislature, unlike Jammu and Kashmir.