The group headed by former supreme court judge Saghir Ahmad submitted its report to the region's Chief Minister Omar Abdullah late Wednesday.
The demand of autonomy in the region is being advocated by the pro-Indian ruling party of the region National Conference. The party has passed autonomy resolution in the state legislature in 2000, which was turned down by New Delhi.
The working group was nominated by Prime Minister Singh in May 2006 to find a permanent solution to the conflict in the region.
Militants belonging to several rebel groups are engaged in a guerrilla war with the Indian army and paramilitary troops stationed in the region since 1989.
Separatists in the region have been demanding end of New Delhi' s rule in the region. While some are advocating region's merger with Pakistan, the others argue complete independence as the viable option for Kashmir resolution.
In the past the idea of autonomy under Indian rule was rejected by separatists.