Balwinder Kaur, 50, died on the spot after being hit by a bullet in Alamgir area.
Ludhiana Commissioner of Police Jatinder Singh Aulakh told the media that the woman had got a telephone call on Monday from some people to come to Alamgir for a meeting.
"She came here today and spoke to the people for about 45 minutes. She was shot dead from close range," Aulakh said.
He said the police had some leads regarding the incident and would make arrests soon.
Kaur was arrested last year in October after being accused of desecrating the Guru Granth Sahib. She was allowed bail in December last year.
The woman did not go back to her home in her village. She was living with a relative in Ludhiana.
Police said further investigations were on.
Punjab was on the boil in August-September last year following a series of incidents of sacrilege of Guru Granth Sahib at various places. The violence that followed left two people dead and scores injured.
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