The martyr's family members and residents of Tarsama village bid a tearful adieu to the soldier, and raised anti-Pakistan slogans at his funeral.
Naib Subedar Jagram Singh Tomar's 10-year-old son Neeraj lit the funeral pyre while resolving to join the Army.
"I will join the Army to take revenge from Pakistan...," he said.
The 42-year-old junior commissioned officer was killed on Saturday after Pakistani army fired on Indian Army posts along the Line of Control (LoC) in the Krishna Ghati sector in Poonch district of Jammu and Kashmir.
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Earlier, as the mortal remains of Tomar were brought to Tarsama in an Army vehicle, a pall of gloom descended on the village.
Tomar is survived by his wife, two daughters and a son.
On behalf of the Madhya Pradesh government, Health Minister Narottam Mishra paid rich floral tributes to the martyred soldier.
Mishra announced an ex-gratia of Rs one crore, a house and a government job to a family member of the soldier.