Due to some family issues I had to return to India for unknown amount of time . For at-least next 6 months my current employer is ready to pay me as an individual contractor on 1099 , Once I return back I will be on W-2 . The employer is the one holding my H1B . Can I work on 1099 while I am in India as technically I am not on H1 status while I am here. Will I be violating any rules ? I am sure I will be returning back later on , but not sure when . I was in US for 32 days returned to india on 2nd Feb and worked on W-2 till April 15th .

Since you are from India, and perhaps your employer is Indian as well, I would recommend discussing this issue with your employer and the company's attorney.

My employer is not Indian , Its an american company . Thanks .