Security forces launched a cordon and search operation in the Tikken area of Pulwama district in the early hours of the day on receiving information about the presence of terrorists.
Laiba Zabair (17) and her younger sister Sana Zabair (13), residents of Abbasspur in Kahuta Tehsil of PoK, were noticed moving into this side by Indian troops deployed along the LoC in Poonch sector.
There are a total of 305 candidates in the electoral fray including 166 from Kashmir division and 139 from Jammu division for DDC elections in phase 3.
According to sources, the Pakistani army also suffered numerous casualties in the "strong and effective" retaliation by the Indian troops as several of their posts were also destroyed.
The officials said cross-border firing between the two sides continued till 4.15 am on Sunday, and added that there was no report of any casualty or damage on the Indian side.
Havaldar Patil Sangram Shivaji, was critically injured in the Pakistani firing in the Lam area of Rajouri district's Nowshera sector around 1 am and later succumbed to the injuries.
Acting on specific information about the presence of militants in Rangreth near the old airfield here, the security forces launched a cordon and search operation in the area, a police official said.
A top police officer said that two terrorists' bodies are visible and expressed possibility that there could be one more as searches are still underway.