Police reportedly fired teargas at mourners. Kashmir is under lockdown as protests against Indian rule continue.
More than 80 people, nearly all anti-government protesters, have died in more than two months of violence.
Nasir Shafi was found dead after going missing on Friday in Srinagar.
An almost complete curfew is now in place in Kashmir, part of the Muslim-majority Jammu and Kashmir state.
Why has Kashmir erupted in violence?
Some reports say Nasir Shafi was 11 years old.
Correspondents say restrictions on free movement and internet use are at their tightest since street demonstrations began on 9 July.
They were sparked by the killing of a popular militant leader in a gunfight with the army.
Security forces have continued to fire lethal shotgun pellets at protesters, despite the government saying it would use an alternative.
Disputed Kashmir is claimed in its entirety by both India and Pakistan and has been a flashpoint for more than 60 years, causing two wars between the neighbours.
Thousands of people have defied a curfew in Indian-administered Kashmir to attend the funeral of a schoolboy whose body was found riddled with pellet wounds, local media report.