The incident took place in Pulwama district, 30 km from here.
"A boat carrying nine soldiers capsized Saturday morning in Kakapora area," a police officer told IANS.
"The soldiers are marooned on a piece of land they managed to reach after their boat capsized. All of them are highly trained swimmers," the officer said.
"Seven of them have been rescued. An operation is on to rescue the remaining two," the officer added.
The Indian Army has been assisting the Jammu and Kashmir government in relief and rescue operations.
Top army officials said all army resources in the state are being mobilised to help people affected by the floods due to heavy rainfall in the last five days.
Also, one of the three bridges on the Tawi River in Jammu city was washed away by flood waters Saturday.
The bridge was inaugurated in May last year.