Thank you for your question. Please permit me to assist you with your concerns.
I wanted to find out If given my H-1B transfer application gets approved before I resign, will I go out of status during the 6 month non-compete period when i would be literally sitting at home in US without work?
That depends on whether or not your employer agrees with your past employer to essentially 'buy out' the non-compete. If the current employer enforces it, you cannot work, and must remain at home until the non-compete is released.
- Also, will this have any issues if i travel back to my home country (India) and come back before the joining date with a letter of recommendation from the new employer. I read somewhere that LCA application has a time limit of 6 months. Does this mean Visa transfer done today is only applicable until 6 months from now?
It means that the Visa is only good for 6 months, and not for 6 months from now. It does mean that you can leave the country but so long as you return within 6 months, your Visa and your right to remain in the US would not be voided.
What other complications do you think I can face if i move forward with the offer?
The issue may be lack of working. An H1B is only granted to working employees, so if you sit at home and not work, the visa can be rescinded. As such, it makes sense to have your new employer negotiate a fee with the past employer about them releasing the non-compete outright, and permitting you to work once you leave this employer.