Hi, I am happy you have a decent budget but you need to get the facts right. Im glad you have not bought anything yet, which is great so you can make a wise decision. Since you have a budget of 40k, let me show you what is recommended from top to bottom:
1. Seperates : receiver + 5.1 speaker system
2. HTIB : eg denon 1312 XP, onkyo HTS 3400
HTIBs are great for people who do not have a budget or do not want to go throught the hassle of selecting components. Since you have a budget, I would eliminate option 2 and go straight with option 1.
Lets talk about seperates : receiver + 5.1 speaker system
Denon 1312 is a great entry level budget receiver. Enhancing the home theater experience, the Denon AVR-1312 5.1 Home Theater Receiver blends quality performance and convenient features. Offering the latest inputs, this powerful receiver features advanced processing that brings out the best in your Blu-ray/DVD players, game consoles, and other entertainment devices. The AVR-1312 supports high-resolution audio formats, including Dolby TrueHD and DTS-HD, for a dynamic surround-sound listening experience. It also supports HDMI 1.4a, allowing you to get the most out of 3D content. Enhanced by convenient digital inputs, including a dock connectivity option for iPod and iPhone, the AVR-1312 serves as a quality foundation for your home theater system.
5.1 speaker systems:
JBL Cinema 300
Polk Audio RM6750
Wharfedale Moviestar 65+
Boston Acoustics Soundware XS (my pick)
Jamo 102HCS5
All the above are great systems, not sure about pricing. Please try to demo 1312 with either of the above systems and then decide. If you still want to go for HTIB systems then the Denon 1312XP with active subwoofer is better than onkyo HTS 340.
all the best!!!