Meanwhile, the security forces have cordoned off the area and are conducting a search and combing operation.
The attack was very bad and happened on the rear side of the Sunjuwan Army camp near Chennai in the outskirts of the city.
Earlier, two army men were killed, who were identified as Junior Commissioner Officer (JCO), a Non-Commissioned Officer (NCO). The injured include a lieutenant and his daughter, reports said. Almost a dozen soldiers were killed when militants attacked the camp in 2003.
S.D. Singh Jamwal, the inspector general of police in Jammu, said that at about 4:55 am, a guard noticed suspicious movement before gunfire on his bunker. The 2001 Parliament attack convict was hanged inside Tihar Jail and buried there on 9 February, 2013.
Harsh said that Central Government must exert diplomatic pressure on worldwide forum to isolate the rogue nation and declare it a Terrorist State.
After hearing the gunshots, other troops at the station retaliated and exchange of fire continued for almost an hour, sources said.
Para commandos were airlifted from the army's Northern Command headquarters in Udhampur town to flush out the holed-up militants, believed to be three to four in number.More news: Salesforce invests $2 billion into its Canadian business
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A defence spokesman in a statement said in the early hours after a brief exchange of fire with the sentry on the periphery, some terrorists entered the accommodation complex in Sunjwan military camp.
Besides recovering arms and ammunition from the slain terrorists, JeM flags have also recovered from them.
Soon after the attack, reinforcements of the Army's special forces and SOG rushed to the spot and cordoned off the whole area amid a fierce gunfight, security official said.
"We have received information that the operation is going on".
Chief minister, Mehbooba Mufti, expressed anguish over the militant attack and the loss of life caused in it.
"The DGP has apprised him of the situation".