As soon as the Lok Sabha assembled for the day, Speaker Sumitra Mahajan condemned the attack and asked the members to observe silence in the memory of the victims of the dastardly terror attack.
Prime Minister Narendra Modi was present in the house.
The Pakistani Taliban killed 148 people, including 132 children, in an audacious terror attack Tuesday on an Army Public School in Peshawar city.
The Lok Sabha also passed a resolution proposed by the Speaker expressing "shock, sense of deep outrage, profound sorrow" and condemned the "despicable, senseless, horrendous and cowardly terrorist attack".
The resolution said the house "extends its heartfelt condolences to and sympathises with the parliament, government, people of Pakistan, the bereaved families and the injured".
It said: "The house resolves that all barbaric terrorist attacks against innocent people, especially vulnerable children, should not be tolerated and calls upon all the nations and each and every one with all the energies at their command to fight against all acts of terrorism in all its forms and manifestations."
In the Rajya Sabha, Chairman M. Hamid Ansari paid tribute to the victims of the terror attack and members observed silence for two minutes.
"This brutal and cowardly act is deplorable. The incident is indeed tragic and unfortunate," the chairman said.
"This incident only reaffirms our resolve to fight terror with more determination and firmness," he added.