Heavy and light weapons are being used in the clashes.
As local witnesses say the sides of the clashes are not unknown.
They added the clash has been extended to Khair Khana area in Kabul.
A Taliban source said their fighters engaged in a gun clash with Daesh forces having been hidden in a residential home in Khai Khana area.
“3 Daesh fighters with their explosive belt were killed during the clash.” Mohammad Jalal a member of Taliban twitted.
This comes as Taliban have recently engaged in some gun clashes in Kabul and other provinces claiming they have fought Daesh fighters, but later it revealed Taliban fought some powerful local commanders.