Silly: Being Sarcastic, Witty, Funny

My wife calls me "King of Sarcasm". In my defense I say "I am just being silly"

If you peel the layer, sarcasm arises when you don't want to be blunt and direct. You fear the repercussion and also you have this pressing urge to get your message across; the resultant product - sarcasm.
When my wife prepares a bland dish where I am put under the radar to pass my judgement; you know you will be in deep trouble if you say an honest opinion. That question is always asking for trouble. My reply was "Its nice, kid-friendly dish". Note I didn't rock the boat and passed my message across in sarcasm. Emoticon: ;)

To be funny is difficult. Timings is really important . You have to flush out all the negative energy and be genuinely void of any biases against anyone in that situation. My late grandfather was a genuinely funny person. People also vouch for my Dad as one the funniest people they have met. A trait that I did not inherit as a legacy. Late Majid Uncle in recent times was a very funny person too.
My friend Jaffar Saleem is the most hilarious of the bunch. Even his name elicits laughter lol.
They genuinely see goodness in people and care about them. Being funny you brighten up other people and uplift their spirit without being offensive.
In the wake of Ashley Madison data leak I had my Facebook status as "Baal baal bach gya #AshleyMadisonLeak" (Meaning: Saved by an inch). I think that was funny. Managed to put smile on few faces. Emoticon: :D

Witty is one-liners. Tongue-n-Cheek comments. It falls between funny and sarcasm. It can have elements of both. Wittiness is situation based and timing is really important.
Me and my wife were talking about how Chris (from Steven and Chris Show) died and what media is making up the reason to be is sleep walking. I was refusing to believe in the face value and thought there is some foul play involved. My wife being his big fan she was simply refusing to see the other way. And during this, I glanced at my daughter and while shes asleep; she had literally covered every zone of the bed rolling, I blurted that she is "sleep walking" which diffused the situation and brought smile on my wife's face.  Emoticon: :P

Just be your silly self and let people classify your silliness as witty, sarcasm or funny. After all they all put smile on people's face. Emoticon: :)