The militants fired indiscriminately, killing residents who apparently defied extortion demand by the militants.
Residents are fleeing the area with their belongings following the attack. A Magistrate's car has been set on fire by an angry mob in the district.
Incidentally, the attack comes a day after the Bodo militants' outfit observed their 23rd raising day in which they had issued a threat to the security forces.
"NDFB insurgents attacked Balisang village in Biswanath Chariali police station and fired at the locals having a mixed population of Assamese, Nepalese and Adivasis," Superintendent of Police Surender Kumar said.
Ten bodies were found from the spot. Seven villagers were killed on the spot. Six of them were identified as Chhandra Chhetri, Hagro Telenga, Dulumani Bora, Goma Devi, Thurku Gor and Mohan Bahadur Chhetri.
Nine injured people were admitted to Biswanath Chariali hospital.
Kumar said the situation was tense as the villagers were moving on roads with sharp weapons.
Special police picket has been set up in the village, he said. (With PTI inputs)