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A Sitting Room is generally close to the Front Entrance and dedicated for those guests who are Officials & or For Guests who are not in your Personal Circle. The Livingroom is specifically dedicated to the Informal Area for the Owner's own Private Use & is generically close to the Kitchen either at the Back of the House / Close to Informal Private Usage.
The living room may consist of a sitting area but it also includes other furniture accent and also function as entertainment center.
A lounge is usually a little more formal, with comfortable chairs, couches, beautiful tables, art, maybe bookshelves, etc. It's a room where you can receive company, sit a read, listen to music, etc.
A living room is more of a place for the family to gather for fun activities; playing games, watching TV, kids bringing friends over, etc. It's usually set up with a television and entertainment system, and is less formal than a lounge or sitting room.
This is a link to a home model that shows two different rooms. What I would consider the lounge, they label the "gathering room". If you take a look at the photos, you can see what I'm talking about.
What are some tips for decorating a living room?
Living rooms come in all sizes, colors, materials, textures, lighting and styles. They also serve different purposes. Some homes have a formal living room in addition to a more casual family room, while othe