Reports said an MI-17 crashed at Garend Kalan, some seven kilometers away from Budgam town at around 10:40 am.
In the incident, the pilot, co-pilot and a civilian were killed, they said.
Locals told media that three bodies were charred in the incident.
They identified the slain civilian as Kifayat Hussain, who they said was aged around 20.
His relatives said Hussain and several other youth were sitting in the field when the aircraft crashed.
Officials were yet to issue a statement on the incident.