The paper presents a design schema and details of a new Urdu POS tagset. This tagset is designed due to challenges encountered in working with existing tagsets for Urdu. It uses tags that judiciously incorporate information about special morpho-syntactic categories found in Urdu. With respect to the overall naming schema and the basic divisions, the tagset draws on the Penn Treebank and a Common Tagset for Indian Languages. The resulting CLE Urdu POS Tagset consists of 12 major categories with subdivisions, resulting in 32 tags. The tagset has been used to tag 100k words of the CLE Urdu Digest Corpus, giving a tagging accuracy of 96.8%.