With the budget you have in hand, you can get some systems which may work in your favour....how big is your hall or room where you want to install it? Depending on the listening area, you will need to decide the kind of speakers and accordingly then the AVR....you can refer to the What Should I Buy thread or Home Threatre thread which has some experiences of members which will help you in getting a fair idea...
If you have a lot of dealers around, please go and audition all available systems within your budget....it could be possible that you may get something cheaper or maybe you will be required to stretch ......don't rush...take your time..carry your music or movies so that you can have a proper demo...all the best.