The Union Home Ministry said the news report "originally published in Reuters and which appeared in the Dawn claims there was a protest involving 10,000 people in Srinagar".
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"This is completely fabricated and incorrect. There have been a few stray protests in Srinagar/Baramulla, and none involved a crowd of more than 20 people," it said in a tweet.
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On Friday, the administration in Jammu and Kashmir had eased prohibitory orders to allow Friday prayers in local mosques and for people to make arrangements for Monday's Eid celebrations.
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The administration has lifted prohibitory orders from Jammu region, and asked schools to reopen from Saturday.
Jammu and Kashmir was put under complete lockdown on August 11, a day before the government of India revoked Article 370 that gave special status to the state.
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