Three militants forced their way into the camp near the Line of Control (LoC), the de facto border that divides Kashmir between India and Pakistan.
An army officer told BBC Hindi that one solider had been killed in the gun battle which is still under way.
Kashmir is claimed by both nations in its entirety and has been a flashpoint between them for more than 60 years.
The Reuters news agency quoted an army official as saying that the attackers entered the Tangdhar camp after cutting through a perimeter fence.
Indian news channels reported that the army had launched a counter-offensive to combat the gunmen.
No further details were immediately available.
Last week, fighting in the same district saw an Indian colonel killed in a gun battle with militants, while two soldiers were seriously injured.
Militants storm India Kashmir army camp
25 November 2015
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An Indian soldier was killed in a gun battle at an army camp in Indian-administered Kashmir, officials said.
