Shinde told reporters in Samba town on the sidelines of a Border Security Force (BSF) Sainik Sammelan: "It is true that information suggests Hafiz Saeed could be visiting areas of LoC to abet infiltration."
Shinde added, "We can't say that we are always on the receiving side."
"We have to compromise sometimes, but if they (Pakistan) take an uncompromising position, we will deal with them accordingly."
The union home minister said India has always maintained that Kashmir is an integral part of the country.
"No third party thing can work. Anything that has to happen has to happen bilaterally," he said.
The home minister said that the matter has been taken up in flag meetings. "I have surveyed areas along the border today, even those from where infiltration took place recently."
"Yes, there is more infiltration as compared to past times. But, the forces are ready to face any situation," he asserted.
Shinde added: "We can't be tougher by only saying so. We are taking action to that effect."
On providing security to residents of border areas, the home minister said shelters have to be created by the state government for the civilians when they feel threatened and frightened.
Asked about the reasons for the recent spurt in border firing by Pakistan, he said, "We don't know what has led to the spurt in ceasefire violations, but we are discussing the matter and will find out."
Shinde said for bilateral talks between India and Pakistan a cordial atmosphere is essential.
"Let us see what happens," he added.
Earlier, Shinde made an aerial survey of the International Border in Samba, Akhnoor, Ranbir Singh Pura (R.S.Pura) and Hira Nagar sectors.
He took a security meeting with top BSF field commanders at the Samba headquarters of the paramilitary force.
He later addressed BSF troopers at a Sainik Sammelan where he lauded the high morale of the troops guarding the borders of the country.
He announced that the central government has decided to extend ex-servicemen's facilities to members of the central paramilitary forces on the pattern of those made available to the army.
Shinde told the Sainik Sammelan that henceforth special coaches would be available to the central paramilitary forces for train travel like at present available to army soldiers.
Shinde accompanied by Chief Minister Omar Abdullah and other senior officials also visited the Hira Nagar police station where four policemen and two civilians were killed by three terrorists Sep 26 this year.
The terrorists had later stormed an army camp in Samba where they killed three soldiers and a lt. colonel, before being gunned down by army commandos.
Shinde will co-chair a meeting of the Unified Headquarters in Jammu city Tuesday with Omar Abdullah, who heads it.
The Unified Headquarters is the top security grid of the army, paramilitary forces, state police, central and state intelligence agencies to synergize the anti-militancy operations in Jammu and Kashmir.
The union home minister, who arrived here in the morning, is flying back to New Delhi in the evening after concluding his day's visit to the state.