A boat ferrying mostly students and teenagers from Gandarbal to Batwara near Sringar, capsized in Jhelum river early on Tuesday morning.
A medical superintendent of SMHS Hospital in Srinagar said seven persons had been brought to the hospital, of which four had died.
Three others were being treated.
Rescue operations took time, locals said as desperate attemps were made to contact State Disaster Response Force (SDRF) and other authorities.
The Jammu and Kashmir disaster management authority, however said an SDRF team had joined rescue operations which are currently underway.
They also reported that the majority of people being ferried were teenagers and children on their way to school.
People living in the area rushed to rescue the victims the moment they were alerted about the mishap and quickly mobilised resources.
It should be noted that incessant rains in Kashmir have already disrupted the normal life.