I would suggest stereo at that budget.
I know that surround may be a little more exciting than stereo to think about, but when you're lying in bed and chilling it's gonna be real difficult to get speakers behind your head, because the bed is usually against a wall in Indian homes.
Even if you get the surround speakers into a corner, there isn't going to much surround happening because 'proper' surround requires space behind the listener, which you've got zero of.
Get a decent player, and a nice stereo system. There is no shortage of impact without a sub, and anyway the subs that come with HT setups are pretty pathetic, and so are the speakers. The Z5500 is absolutely horrible. I got a chance to listen to it at the local E-zone (with my own music) and it sounded, as my friend remarked, a "halla gaadi" (Cacofonix cart). I suppose owners will be indignant, but that's the way it is. There's a lot of tizz and a lot of boom, but precious little in the middle or anywhere else.
If you still want to spend on surround, the least I would buy is the JBL SCS140 and HK AV receiver. That would be ~25K, and you'll still need a source. That still has a lot of tizz and boom, but when someone sings it bears some resemblance to a human voice.
I would suggest the Wharfedale 10.1 (~14K) bookshelves, a Norge amp (~7K) and a source (~4K) for a pretty good setup with some decent audio quality. I think there's a big hole in the 10-20K range in surround setups that is dying to be filled, but exactly 0 manufacturers have a product there. Yamaha has a complete HT offering, but the speakers are very yucky, though the AVR is not *too* bad.
The truth is that if you take a reasonable stereo system (say the MX5021, a reasonable enough starting point), you have to really multiply the cost by four or five to get the same quality. Anything less usually results in much lower quality.
I would also check out your TV speakers as a temporary system. Nothing wrong with that, if you ask me. It's free and it is at least as good as the entry level HTiBs from Sony and Philips, except that it makes less noise. That may not be a bad thing...