"Indian aircrafts intruded from Muzafarabad sector", Pakistani military spokesman Major General Asif Ghafoor said on Twitter early on Tuesday. Meanwhile, India has reportedly fired mortar bombs into Pakistan killing civilians, including children.
The chopper broke into two and caught fire immediately.
Airspace over Leh, Srinagar, Jammu, Pathankot and areas bordering Pakistan were shut indefinitely on Wednesday in the wake of the security situation building up in the area.
The helicopter apparently went down near Budgam in the Indian State of Jammu and Kashmir.
According to latest media reports, 8 airports in India have been shut down amid growing tensions with neighboring Pakistan.
An Air India official was quoted by news agency ANI as saying, "Air India avoiding route of Pakistan air space with immediate effect".
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Police has rushed to the spot and are verifying the incident, he said. "One Indian pilot arrested by troops on ground".
There were no immediate reports of the Pakistani side having dropped any payload in the Indian territory.
Lt. Col. Devender Anand, an Indian army spokesman, said Pakistani soldiers targeted dozens of Indian military positions across the Line of Control throughout the night. Pakistan's Civil Aviation Authority tweeted on Wednesday evening that Pakistani airspace has partially restored, with Karachi International Airport now open.
Turkish foreign minister added that Ankara ready to play its part to ease tension between Pakistan, India.
"In such a case, a court of inquiry will establish the cause of the crash", Bannerjee said.