You may get better HTIB packages from Onkyo/Denon/Yamaha at around 40k. Its better to avoid popular consumer electronics brands like sony/lg/samsung, if you are serious about HT and look for dedicated brands as mentioned above.
If you bargain well, you should get yht 299 within 35k. The other option would be to get separates, which will be above your budget, but then you would be getting much better sound, however, if you want a good system just for surround sound the yht-299 fits the bill perfectly. Whats more, it comes with an active subwoofer, opposed to the likes from onkyo, pioneer, etc