The Maruti Suzuki Brezza would suit you quite nicely. The Brezza seats are comfy and soft, so on long journeys, this may not be ideal, but since your driving is mostly in the city, this is something you will appreciate. The low-speed ride (city speeds) is also nice and pliant.
Space inside will also be quite good enough for your family of five, and while it does not offer as much shoulder room as a Mahindra XUV3XO, the Brezza will be more fuel efficient too. At your budget, you will get a VXi trim car, which will have all the basics minus the sunroof that you do not want.