The accident happened at Kaler Khurd village on the Amritsar-Pathankot railway section, the Government Railway Police said.
Manpreet Singh, driving his tractor-trolley, was killed when the Pathankot-Amritsar passenger train hit his vehicle at the unmanned railway crossing.
Sardari Lal, a train passenger, was also killed in the accident, the GRP said.
Two persons travelling in the train were also injured and were admitted to a hospital in Amritsar.
Traffic on the Amritsar-Pathankot section was suspended for three hours following the accident.
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