A junior commissioned officer and a non-commissioned officer were martyred after heavily-armed terrorists wearing combat uniforms attacked the Sunjwan Army camp in Jammu city on Saturday.
Two terrorists have also been killed in retaliatory action.
The operation is still on.
The army in a media briefing confirmed that two terrorists have been killed in the counter-operations. Arms and ammunitions, including AK-56 rifles and hand grenades have been recovered from their possession.
Nine people, including five women and children received injuries in the attack. Two of them are in hospital in critical conditions.
Parliamentary Affairs Minister Abdul Rehman Veeri informed the Jammu and Kashmir assembly that Subedar Madanlal Chowdhary and Subedar Mohammed Ashraf Mir were killed in the attack by a group of terrorists.
Those injured included a Colonel rank army officer, Havaldar Abdul Hamid, Lance Naik Bahadur Singh and daughter of Subedar Chowdhary, he said amid protests by Bharatiya Janata Party members who raised anti-Pakistan slogans in the House.
Director General of Police S P Vaid said the terrorists entered from the rear side of Sunjwan Army camp where family quarters are located.
The terrorists have been isolated, officials said.
Inspector General of Police S D Singh Jamwal told reporters that "around 4:55 am suspicious movement was noticed by the sentry and his bunker was fired upon. The fire was retaliated. The number of terrorists isn't known. They've been cornered in one of the family quarters."
Security forces and police have cordoned off the area around the Sunjwan Army camp. The camp falls under the first Jammu and Kashmir Light Infantry in 36 Brigade.
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.
Schools in the entire area around the camp have been closed by authorities as a precautionary measure.
A high alert has been sounded in Jammu and security beefed up in and around the city.
Intelligence inputs had warned of an attack on the army or security establishment by Jaish-e-Mohammed in view of the death anniversary of Afzal Guru who was hanged on February 9, 2013.
