The incident come days after a meeting between Indian PM Narendra Modi and his Pakistani counterpart Nawaz Sharif in Russia last week.
The Inter Services Public Relations (ISPR), in a brief statement, said the Indian drone was brought down near the Line of Control in Bhimber area of Pakistan occupied Kashmir.
The army claimed that the drone was being used for aerial photography and was “brought down for violation of Pakistan’s territorial integrity.”
"An Indian spy drone was shot down by Pakistani troops which intruded into Pakistan along [the de facto border that divides the region] near Bhimber today. The spy drone is used for aerial photography," a statement from the Pakistani military said on Wednesday, reported BBC.
Pakistan also summoned the Indian envoy in Islamabad over the incident.
But a spokesperson of the Indian army denied the report. "Some reports of a drone crash in PoK [Pakistan-controlled Kashmir] are being referred to. No drone or UAV [unmanned aerial vehicle] crash of the Indian Army has taken place," the spokesperson told the Press Trust of India news agency, BBC reported.
An air force spokesperson also denied that any of their drones had been brought down.