Recently I entered in USA and I have valid H1B visa till September 2017.
Problem is they issued I-94 till September 2015 which is my passport expiry date.
I will get my passport extended here in USA. What is the process to extend my I-94 after getting new passport as VISA is valid till September 2017?
The best option for you is to get your passport renewed ASAP and using that exit out of US and re-enter. Before exiting, at the border, talk to the Homeland security officials there. There is a good possibility that you may get a better alternative. (I have once crossed border by walk at San Diego in California.).
BTW, dont publish your personal details(your full name etc) online without the need. for your safety