Pakistan said on Wednesday morning it had carried out strikes into India to demonstrate its right to self defence a day after Indian jets hit its own territory.
"If India is striking at so called terrorist backers without a shred of evidence, we also retain reciprocal rights to retaliate against elements that enjoy Indian patronage while carrying out acts of terror in Pakistan".
Gen Asif Ghafoor, said Indian planes crossed into the Muzafarabad sector of Pakistani-controlled Kashmir during that strike.
"PAF shot down two Indian aircrafts inside Pakistani airspace", he said in a tweet.
Indian police reported that an Indian air force plane crashed in Indian Kashmir on Wednesday, killing two pilots and a civilian.
Indian air force jets intercepted the Pakistani aircraft in Kashmir and forced them back to Pakistan, an Indian official told Reuters.
India claims the bombs killed "a very large number" of fighters at a militant training camp in Pakistan, raising the chance of conflict between the nuclear-armed neighbours.
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The incident followed three Pakistani combat jets entering the Indian side of Kashmir in retaliation for previous incursion by India.
The conflct in the region escalated after India bombed militant camps in Pakistan yesterday - camps Pakistan claims do not exist.
On Wednesday, security forces killed two Jaish militants in a gun battle, Indian police said.
The aerial attacks across the LoC are the first since a war between the two countries in 1971.
Pakistan has therefore, taken strikes at non military target, avoiding human loss and collateral damage.
"The Indian Army retaliated for effect and our focused fire resulted in severe destruction to five posts and number of casualties", the spokesman said.