When people say 'Thank you' to you, how do you reply and what is the correct way to reply?
All the while, i have been saying 'You're welcome' and wrongly typed 'You're welcomed' in my recent email. Does it make any differences?

From simple Googling, how out the following.

The two phrases have different meanings.

The proper phrase, "You are welcome" says that the person is welcome to whatever you have given them.

The other phrase, "You are welcomed", which is not generally used, implies that the person is being welcomed to wherever they are, as in "we are welcoming you into this place". Notice that the sentence does not say who is doing the welcoming, only who is receiving the welcome. It's an awkward phrase and should not be used, even when you are truly welcoming someone to a particular place.

So, when someone thanks you, just say "you're welcome" and if you want to welcome them to some place, then say "welcome to my ..."

source

So, remember to acknowledge others thanks without the 'd'. I used to hear the following recently:

- No problem.
- Thanks, you 'r most welcome.
- Not at all.
- Sure.
- Please don't mention.


Whatever is it but remember that it is impolite not to reply.