Superintendent of Police, Monchak Ipper said Amal Malakar was attacked by his neighbour Gopal Malakar with a hatchet yesterday night.
Mr Ipper said Mr Gopal was mentally unsound and was arrested after the incident.
Five persons were injured when they tried to save Amal from Gopal, the police said.
BJP state in-charge Sunil Deodhar told reporters at Agartala that the incident was the "seventh politically motivated murder by the ruling CPIM in Tripura".
Deodhar claimed that Amal was a BJP member. Election for the 60-member Tripura Assembly is due early this year.
Reacting to BJP's claim that Amal Malakar was a BJP member, CPI(M) leader and local MLA Sudhan Das said the opposition party was trying to politicise the incident.
The incident has no relation with politics, he added.