Tahira, 44, sustained injuries during the encounter and was rushed to the district hospital, but she could not be saved.
Earlier in 2010, the highest number of 156 terrorists were killed between January and July that year.
Sandeep was nabbed from the same house where LeT commander Bashir Lashkari was killed on July 1. His arrest led to Shah being caught.
An official said the attack appears to be a reprisal for killing of several Lashkar terrorists.
The number of terrorists killed in the past seven months this year is the highest in the same period over the past seven years.