Its a tough question, well, first of all lets start with he specs you should look for while buying a digital camera -
1. Insist on highest Optical Zoom you can grab.
2. You can ignore the Digital Zoom option, it isn't very useful.
3. Try to get the max MP you can.
As far as getting a Digi Cam in optimum budget is concerned, people have good words for Canon A580, check out this link,

http://www.technospot.net/blogs/canon-a580-best-digital-camera-under-10000-rs-inr/

Another post which might be helpful in making a choice -

http://www.technospot.net/blogs/few-things-to-get-good-results-from-your-digital-camera/

If you have already some Cameras on your list, we can help you making a choice out of it, if you send the list.

Divya What kind of Digital camera you are looking forward to. If you can tell what feature and what budget you have, We can find some for you.

Plz can u help me out in buying a digital camera which is best as well as cheap for home use.NEED AN EARLY REPLY AS IT IS URGENT.