"Pakistan must respect rules of engagement and the ceasefire agreement. How can we tolerate mutilation of our braves. Redlines must be drawn," Information and Broadcasting Minister Manish Tewari said in a remark posted on the social networking site Twitter.
Congress also reacted with anger and outrage over the incident with party spokesperson Rashid Alvi saying that Pakistan should not try India's patience.
"What Pakistan has done on our borders is unfortunate. Pakistan should not try our patience. We have lost our patience now," he said.
Alleging that the neighbouring country does not have respect for Line of Control, Alvi said, "We want good relations with all neighbouring countries including Pakistan.
But Pakistan itself has put a question mark."
Condemning the brutal killing, BJP said it was a "warning" to India and asked the government to place all facts before the international community so that Islamabad can be "named and shamed" before the world at large.
BJP leader Arun Jaitley also asked the government to "clearly define the dos and don'ts" in relations with the neighbouring nation.
In a "provocative" attack on Tuesday, Pakistani regular soldiers crossed into Indian territory in Poonch sector of Jammu and Kashmir and ambushed an Indian patrol killing two soldiers, one of whom was decapitated.
