Four policemen deployed in the area have been suspended after the incident, they said.
According to police, Dharam Singh's pet dog excreted in front of his neighbour Yogendra's house, leading to a heated argument during which some miscreants opened fire, killing four persons.
Yogendra, Dharam's wife Nirmala and his relatives Pravesh and Bijendra were killed, police said, adding that the injured were rushed to hospital.
An FIR was registered in this connection and a manhunt has been launched to nab the accused, they said.