Hi
@aswinrulez,
I suggest you can go slow to start off with. With your budget you can set up something that can sound better than a sound bar and you may need to have some patience and add components one by one.
For AVR you may go the used route for now. One of the FM
@avtar2008 may have a Yamaha AVR V673 (You may PM him for the price) up for sale and you can choose either Polk15 or IndiqAudio GoldMishra Bookshelf speakers to start off for front LR. Both can be further re-used as surrounds when you upgrade your front stage at a later stage if required.
The Gold Mishra’s are actually too good to be used as surrounds as they perform very well as front speakers and has an excellent sound signature too. If your listening space is not too big you can even get away without a sub and Center channel for the moment as this one can produce a good amount of low end and has nice mids to it as well. The advantage what I see here if you choose IndiqAudio is, you get to upgrade the speakers in the future to their higher end models in the span 3 years if you like by just paying that extra amount by exchanging this. This is a great VFM according to me.
I think this set up should come within your specified budget to start off and you will be happy with kind of sound it can reproduce. Especially for music, this will be more than sufficient but for movies, may be you can add a sub for that low end grunt when you have time and budget available. Keep a look at the for sale section and someone may sell a sub soon which you may grab it.
If you buy the Polk S15, it can too definitely serve the purpose of being fronts but adding a sub will be a must and at a later stage you can always move it as surrounds.
just my 2 cents!
Regards,
Som