Pushpa Devi, wife of Vijay Kumar Rai, said: "I will not accept the Rs.10 lakh till the Indian government takes tough action against Pakistan."
She threatened to immolate herself along with her children and members of her family if no action was taken against Pakistan for the killing of the five soldiers in Jammu and Kashmir early Tuesday.
"Pakistan should be punished for its cowardly act and India should prove its might and must warn Pakistan," Pushpa told the media in Anandpur Thehka village.
According to India, "heavily armed terrorists" sneaked into Jammu and Kashmir and ambushed an Indian Army patrol near the Line of Control (LoC), killing five soldiers and seriously wounding a sixth.
All the dead soldiers were from Bihar Regiment.
Ramji Singh, uncle of Vijay Rai, added: "Action against Pakistan is the need of the hour."
The soldier's father, Vansidhar Rai, echoed the demand.
"India must teach a hard lesson to Pakistan by taking some rare action against it. It is high time the government must act," the resident of Ara in Bhojpur district said.
Meera Devi, mother of Raghnandan Prasad, another soldier who was killed, spoke similarly.
"We should not be silent. India should respond against Pakistan," she said.
Raghnandan, a resident of Nautan in Saran district in Bihar, was about to get married soon.
Hunderds of angry people in Nautan forcibly halted two long-distance express trains Wednesday afternoon demanding that India act against Pakistan.
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