Pinky Mallik, 32, was admitted to the MR Bangur hospital last week with burn injuries and she succumbed to the injuries on Monday, police said.
Pinky's husband Sajan Malik claimed that his wife was cooking on a stove when it exploded and her clothes caught fire.
However, Pinky's parents alleged that their daughter was set on fire by her husband and in-laws for failing to meet their dowry demands, a senior police officer said.
Following the allegations, Sajan and his father Rajkumar were arrested on Monday on charges of dowry.
Dilip Mallik, the woman's father, a resident of Bihar's Begusarai, had lodged a complaint with the Phoolbagan police station accusing her in-laws of murdering his daughter.
The couple got married around six years ago and the alleged torture for dowry started soon after that, her father alleged in the complaint.
"We are investigating the matter and will take necessary action against those who will be found guilty," the investigating officer said.