"The fight between the Punjab Police commandos and the terrorists is still on" at Dinanagar in Gurdaspur district, the official said here. "It is expected to get over in an hour or two."
The official said the dead included two police officers, two Home Guards and three civilians.
He said two of the terrorists had also been killed in the Dinanagar police station complex. [Live: Terrorists from Pakistan not ruled out]
The official said the terrorists, whose identity was not yet known, first tried to snatch a van from a man but later got hold of a small car and drove it to the police station complex early on Monday morning.
"When they entered the police station, only three or four policemen including the SHO were there.
"They first fired at the policeman guarding the station," he said, adding that another policeman, on hearing the shots, came out and fired at the terrorists.
The dead included Superintendent of Police Baljit Singh.
The official denied speculation that there was a woman terrorist among the attackers.
"As of now only Punjab Police commandos are involved in the operation but the central government has rushed the NSG (National Security Guard) and the army to support them," he said.