Tax deduction for employer on gift to employees

Gift received from the employer is taxable in the hands of the employee as perquisite under salary head.

If you are getting income as professional income, you can deduct the gift expenditure from the income.

If you are getting your income as salary, you cannot deduct the gift expenses from the income.

I receive income as professional income. Is there a limit on gift amount that can be given to employee ? I mean calculations based upon their salary or something ?

There are no such restrictions. 

But there are restrictions if you pay to specified persons u/s 40A(2) (Example: Relatives, Partners, Directors)

Refer to the section for details