+1 to denom's suggestion. Also check Onkyo HT-S3500/3400 in less than 30K range. Both the models come with Passive sub woofer. Take audition and then decide the one that suits your taste. My personal preference in Onkyo as it has OSD, which is missing in Pioneer.
If you can increase the budget check Denon DHT-1312XP and Yamaha YHT-298.
Try JBL SCS-140BK speakers paired with Harmon Kardon AVR-134. I have been using this in my room for over 2 years and they are excellent value for money, and the sound imo is much better than Onkyo 3400, which I also have installed in one of the other rooms in my house.