Khalsa, who belongs to the SC community, had won the 2014 Lok Sabha polls on the Aam Aadmi Party's ticket, but was suspended from the party in 2015.
He started his political carrier with the Bharatiya Janata Party's ally in Punjab Shiromani Akali Dal (SAD).
The BJP is in alliance with the SAD in Punjab and will contest on 13 Lok Sabha seats in the state.
Khalsa was suspended from Aam Aadmi Party on 29 August 2015 against anti-party activities. The leader later denied any involvement in any such activities.
The induction comes only days ahead of Lok Sabha polls in Punjab, the voting for which is set to take place on May 19. The counting of votes for the same will take place on May 23.