Watergam is a village close to the hometown of Mohammed Afzal Guru, a Kashmiri Muslim who was executed on Saturday at a jail in New Delhi after being convicted of helping to plot the deadly 2001 attack on the Indian parliament.
A senior police officer, who was not authorised to speak to the press, said that the youngster had already been buried in his home village and around 3,500 mourners had attended the funeral service.
The officer said an inquiry had been launched into the shooting and that initial reports suggested the death was the result of firing by a paramilitary force which comes under the control of the federal interior ministry.
Guru's execution has been heavily criticised in Kashmir with the state's chief minister among those warning that it could lead to more unrest in the disputed region.
Security forces have imposed a curfew in much of Kashmir while a general strike was in force on Monday to mark the 29th anniversary of the execution of Maqbool Bhat, a leader of the Jammu Kashmir Liberation Front (JKLF).