You will be able to play PS4/xb1 gen games in that budget.
For next gen, pc will cross 1 lac easy.
Definitely. Also, I think gaming at 1080p-1440p is just fine, you'll save a lot of money. Investing in a graphics card equivalent or better than PS5/XSX GPU now, that is capable of 4K and RT, would just be too much, will cross 1 lakh easily as you said. These are the minimum requirements for a PC to be next-gen ready IMO:
1 TB NVMe SSD Gen 3 minimum
GPU with hardware RT support (capable of 1080p60, up to 1440p)
6C/12T CPU preferably Zen 2 (or 8C/16T Zen+ Ryzen 2000 series minimum)
8GB VRAM minimum
12-16GB DRAM
Really curious to see what AMD has to offer on the GPU side for PC. A 20 CU RDNA 2 GPU with RT HW, the one found on Series S, as a PC graphics card would be nice. That combined with Ryzen 5 3600 would make for a nice budget RT build by early next year.