Start auditioning the Home theater systems in your area and go with the system which sounds good to yours ears.
I assume Your living room could be bigger than 10x10, so better get Floor standers for Front left , right.
Now a days decent AVR itself will cost you closely to 1 lakh , so you may need to increase your budget. Look into Denon,Marantz,Yamaha AVRs etc.
For speakers check DALI/Monitor audio/Kilpsch/Sonodyne ..etc. There are other good brands as well.
If you want punchy and powerful BASS then go with SVS/REL/XTZ/Rythemic 12" subs..etc. But these Subs itself will cost you 1+ lakh.
Or else stick with POLK/BIC America 12" Subs which are budget friendly .
Cheers.. Good luck for your search.