Initial reports state that one person died and three others have been injured.
A suicide bomber targeted the humanitarian organisation Care in the Shar-e-Naw area and gunmen then stormed the building.
India today said none of its nationals was killed in a Taliban attack on a heavily fortified luxury hotel in Afghanistan's capital. Afghan Interior Ministry spokesman Sediq Sediqqi had said that four foreigners -- one each from New Zealand, Canada, Pakistan and India -- were killed in the attack on Serena Hotel which is used by UN staff and foreign diplomats.
Afghan President Ashraf Ghani said a number of people were killed and wounded in the blast that apparently targeted the offices of Afghanistan's main security agency.
The blast caused smoke to rise above the city and triggered an alarm in the US Embassy.
On Friday night, Taliban attackers detonated a car bomb outside the guesthouse and stormed the building, and then exchanged fire with security forces, officials said.
Afghan forces ended the assault after 10 hours of gunfire.
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