I have redirected my above homepage to one of my internal page. So, I am confused whether I should include it in the new sitemap?? And what would be my canonical tag?
Google says you should not include URLs in your sitemap that redirect. If you redirect your home page to a deep URL, you should only include that URL in the sitemap.
If you do include URLs in your sitemap that redirect, Google will show you the error "We found that some URLs redirect to other locations" in Google Search Console. See this question for more details.
The canonical URL for that page should be the deep URL as well. A canonical URL should not redirect.
Redirecting the home page is not best practice. The home page URL is always your simplest URL that is easiest to type. For those reasons it is good for users and usability.
Redirecting to put keywords in the URL for SEO isn't likely to work. Google doesn't seem to use words in the URL path as a ranking signal these days. At most they could help with the click through rate from the search results if somebody searches for those exact words. See Are keywords in URLs good SEO or needlessly redundant?
Twenty years ago, it used to be common to redirect to an internal URL from the home page because of technology limitations. On many web platforms, URLs had to reflect the technology that powered them. (Like all URLs must end with
.asp.) These days with rewrite rules supported on all major servers, that just isn't the case.
I'd recommend not redirecting your home page URL. If the keywords at that URL are important, I'd recommend creating a separate page about that topic and let your home page rank for your brand and domain terms.