I am from the Poonch/Rajouri Border that sees the worst kind of heavy mortar and RPG firing from either side (and i still remember that sound of Pakistani fire sound of ''Tak-dumb'' - Never really figured out what were they firing). At least in my experience, I have never seen anyone on either side running into bunkers (of concrete or simple mud and wood made) and if you have seen that area, you will actually know that either side can pretty much 'see' what is happening on the other side. On a calm day, you can actually listen to the Aazaan or the half day school bell from the other side. Having lived there, I have never seen anything like that. I just shared my personal experience. May be, in areas along Kupwara/kashmir range or keran sector side might have them. This side of Haji Pir is pretty much without bunkers on either side (except Army bunkers and some saangars)
On old rifles; Army does hand in .303 to villagers. But the hand them to trained patrol parties. We call them the Village Defense Committees (VDC). I was myself part of one for my village. But, there is no handing over of rifles to every family, but only to a platoon, which is formed in most of the villages.
One of the reason for not handing rifles to everyone is that on my side of the the border, the area used to be so heavily militarized that it would take moments before a second lieutenant (in 90's that post existed in IA) with his platoon would actually show up on your door step, after they even heard of a disturbance and the BOPs are so close that infiltration from that border rarely happens (specially because the is NO local support for that kind of infiltration stuff). There are only 2 pockets where infiltration happens - krishna Ghati and Buddhal area, but those are very very sparsely populated and therefore don't have VDCs.
My intent is not to tell you that it does not happen. I just wanted to share what happens on our side on the border that I belong to (in the state that we call J&K
- With no occupied or Azads prefixes attached - pun intended)