please check revised one,
with cte as (SELECT (M.Emp_ID) as ID , M.EMp_Name as Name , M.EMP_Salary as Salary,D.Designation_Name as Designation,
CASE WHEN T.DA_Type_ID = 'Allowance' THEN Sum(ASD.assign_amt) ELSE 0 END AS Allowance,
CASE WHEN T.DA_Type_ID = 'Deduction' THEN Sum(ASD.assign_amt) ELSE 0 END AS Deduction,
isnull(M.emp_OT,0) as emp_OT
,0 'txtpresent', 0 'txtabsent',0 'txtsalary',0 'lbOT_Amount',0'txthour'
FROM #tbl_Employee_Master M
inner join #tbl_designation D on D.Designation_ID=M.Designation_ID
inner join #tbl_assign_Allowance_Deduction ASD on asd.Emp_ID=M.Emp_ID
inner join #tbl_Type_allowance_Deduction T on T.DA_ID=ASD.DA_ID
group by M.Emp_ID,M.EMp_Name,M.EMP_Salary,D.Designation_Name,T.DA_Type_ID,M.emp_OT
)select ID , Name , Salary,Designation, STUFF((select', '+ (cast (Allowance as varchar(max))+':'+ cast(Deduction as varchar(max)))
from cte b where b.Id = a.ID
for xml path ('') ),1,1,'' ),emp_OT,txtpresent,txtabsent,txtsalary,lbOT_Amount,txthour from cte a group by ID,Name,Salary,Designation,emp_OT,txtpresent,txtabsent,txtsalary,lbOT_Amount,txthour