"Preliminary questioning has revealed that the terrorist, Usman, is from Faislabad in Pakistan," Danish Rana, Inspector General of Jammu, told NDTV.
Two soldiers were killed in the attack that took place on the highway near Samruli, about 10 km from Udhampur town, an area that has been incident-free for years.
Two terrorists in military uniforms stopped the bus in which Border Security Force soldiers were travelling and started firing. One terrorist was killed when the BSF returned fire.
The second terrorist, Usman, ran into a village in the densely forested area, taking along three locals.
He went into a school, which was fortunately shut today because of planned protests.
After nearly four hours, the terrorist, armed with an AK 47, was overpowered by his hostages just as he fired at a police party. One of the villagers says the man pleaded with them to allow him to escape but they held fast until the police came.
The terrorist, believed to be in his 20s, was tied up in ropes and taken away by a large group of security and police personnel.
Usman will be interrogated in a safe house, said Mr Rana. "We will ask him what route he had taken, what was his target, why they targeted BSF..." the officer said.
Experts said it is a rare catch for the forces, given that terrorists come prepared to "kill and be killed," as opposed to "kill and escape."
The attack comes just weeks before talks between the National Security Advisers of the two countries.
Last week, seven were killed when terrorists attacked a bus and a police station in Punjab's Gurdaspur. The police say they will question Usman about possible links to the Gurdaspur attack.
Sources say several intelligence warnings were given in May of a possible attack on this stretch of the highway, often taken by pilgrims headed to Amarnath.
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