Need a new gaming rig for 60000

I am planning to build a new gaming PC and my max budget is Rs.60000. I am not planning to overclock. I am going to use windows 7 x86 or x64 operating system. Hard drive space needed
1TB.
Provisional Configuration:
CPU - Athlon II X4 635 2.9GHz
MB - GigaByte ATI 785G Chipset MA785GM-US2H
HDD - Seagate SATA 1TB 32 MB Cache
RAM - 2GB Corsair DDR3 1333MHz x 2
Graphics - ATI Radeon HD5850 1GB
Cabinet - Cooler Master Elite 430
SMPS - Corsair VX550W
Monitor - BenQ E2220HD 22 inch
Sound - Altec Lansing VS4621
Any suggestion would be appreciated. Thank you in advance.

The specification you have selected is in fact underpowered for your requirement and your budget. I am telling you an AMD based solution.
My proposal is
AMD Phenom II X6 1090T BE 3.2 GHz at 14k
MSI 880GMA-E45 at 5.8k
Kingston 2 X 2 GB 1333 MHz Ram at 4.2k
Seagate 1 TB 7200 RPM SATA at 2.9k
BenQ G2220HD Full HD LCD at 7.5k
Corsair VX550W at 4.7k
Cooler Master Elite 430 at 2.6k
Sapphire HD 6870 1 GB GDDR5 at 16k
Logitech Keyboard at 0.5k
Gigabyte GM6800 at 0.9k
LG 22X SATA DVD Writer at 0.8k
Altec Lansing VS-2521E at 2.8k
Total 61k. This system will bring you most excellent of the both the world, price as well as performance.

A lot of people will propose a Core i7 930/950 based configuration as well as it is true at what time all the other hardware is similar, core i7 950 is improved performer as compare to Phenom II X6 1090T and it is as well to some extent faster in a lot of other applications also. However Core i7 system will construct you invest at least 11k presently designed for getting a civilized motherboard by means of minimum characteristic set as well as if you desire a premium level board through SATA3 or else USB3 support, smallest amount of 13k to 14k has on the way to be used up for the Mobo. As a result at a budget of 60k, you be able to maximum obtain a GTX 460 1 GB as the best graphics card.

Thank you. I'm checking the prices by means of my vendor at the moment. He also have few of the components as suggested by you and Below is the price list for each component:
AMD Phenom II X6 1090T BE 3.2 GHz at Rs.13322
MSI 880GMA-E45 at 5.8k
Kingston 2 X 2 GB 1333 MHz Ram at Rs.3892
Seagate 1 TB 7200 RPM SATA (32 MB Cache) at Rs.2627
BenQ G2220HD Full HD LCD at 7.5k
Corsair VX550W at Rs.4873
Cooler Master Elite 430 at Rs.2885
Sapphire HD 6870 1 GB GDDR5 at 15k
Logitech Keyboard K200 at Rs.439
Gigabyte GM6800 at 0.8k
LG 22X SATA DVD Writer OEMat Rs.815

However if you go by means of the AMD counterpart, you be able to obtain a extremely fine mobo within 6k by means of USB 3 as well as SATA3 plus superior overclocking support. So you be able to have enough money a extremely fine graphics card, HD 6870 which provide performance far superior as compare to GTX 460 as well as comparable to GTX 470. As well as in gaming, Graphics card is going on the way to substance to a great extent provided you have a decent CPU which is able to handle the graphics card in full work load.The system will be sufficient on the way to play each and every one the current games in highest/higher setting in 1080P resolution.

Amd Phenom II x4 955BE at 7.7k approx
Msi 890GXM G65 at 7k approx
Kingston 2 * 2GB DDR3 1333MHz at 3.9k approx
Sapphire HD6850 * 2 Crossfire at 23k approx
WD 500GB Blue at 1.8k approx
Corsair TX750W at 7k approx
CM Elite 430 at 2.8k approx
BENQ G2220HD at 7.3k approx
Total-60.5k.I think that this setup will be better as well as worth it. .

Processor: AMD Phenom II X4 975 Black Edition 3.6 GHz Rs 8600
Motherboard: Asus P8H67 M pro B3 Revision Rs 7000
Monitor: Viewsonic VX2239wm 21.5 inch Full HD 2ms LCD Rs 8500
Cabinet: Cooler Master 690 II Advanced (RC 692-KKN2) Rs 5200
SMPS: Corsair GS 700 Rs 5000
HDD: WDC Black 1TB (7200 RPM)(64 MB Cache) SATA III Rs 4800
RAM: Corsair 4GB Dual Channel DDR3 Memory 1333 MHz Rs 2000
Graphics Card: Sapphire Radeon HD 6850 1 GB Rs 10500
Webcam: iball 8 MP Rs 900
DVD Writer: 24X LG DVD Writer Rs 900
Keyboard: Razer Arctosa Silver Gaming Keyboard Rs 2200
Mouse: Gigabyte GM-M6800 Gaming Mouse Rs 750
Mousepad: Cooler Master Battle Pad H2 Mouse Pad Rs 350
Zebronics 850VA Dual Battery Rs 2200
Altek Lansing 15 RMS Box speakers Rs 1100

Total Rs 60000