One question...
what is the expiry date on the latest I-94 that you got ?
The INS already knows that you were out of status from March to July. If you have not got an I-94 and your latest I-94 from company X has expired then you are out of status from that point on. I believe that the INS can put 2 and 2 together and say that you have been out of status since march last. You need to get a really really good lawyer and straighten things out...since when you go to the consulate..they will ask you about your last job and how come you worked if you did not have the extended I-94..and they know that such a thing happended, so they could ban you from entering the USA for 10 yrs. I would recommend getting a lawyer to get to change that H1-B approval to one with a I-94 attached to it..re-file and get the story straight. Even though you might scrape thru the H1 visa approval process..this could really screw up applying for your AOS / CP if you are going that route.
Sorry if I sound bleak ...but this is what I think.
1) What are the chances of getting visa in India if I have to go back to get it.
>> I dont know..but less than what they usually are..
2) What documents should I be carrying.
>> every scrap of paper that proves that you were trying to be in status all the time last year..previous H1s receipt and approval/rejections notices will help, paystubs, w2, photos, LCA, current H1 approval, employment letter.
3) As I am on Payroll with company B, am I on status till I received this notice or is it like I am out of status for nearly one year now as my Company H1B was filed around one year back.
>> I think you are out of status. You mihgt even be illegal in the USA if your latest I-94 has expired now.
4) How long do I get before I go to India.
>> ? each day you are accuring towards illegal status hurts you. God forbid you you cross the 6 months mark ( for a 3 yr ban ) or 1 year (for a 10 yr ban )
5) Can I be on payroll with Company B as of now.
>> dont know ..grey area.
6) My wife is in India now can she come back here before I go.
>> she will need to show your approval notice...if that has no I-94 then her H4 visa is also in doubt.