Eight Turkish soldiers were killed in the attack blamed on the outlawed Kurdistan Workers' Party (PKK), and 12 rebels were reportedly killed as army helicopters responded to the assault, the army said in an online statement.
Fighter jets then bombed several PKK positions in northern Iraq where the separatists have bases.
The spokesman for the PKK Ahmed Dennis confirmed the raid, adding that he had no information on casualties.
Later Saturday, two Turkish soldiers were killed by a remote-controlled mine while engaged in operations to capture Kurdish rebels infiltrating across the border.
The PKK often lays mines to attack Turkish forces and civilians suspected of working for them.
Turkish Prime Minister Recep Tayyip Erdogan denounced the attack on the army post as "cowardly" and vowed that it would have no effect on his country's determination to fight the PKK "to the end".