Kirupa,
The syntax of your canonical tag is correct. However, there are a couple things you should know before you continue:
1- When Google says "Ensure that you specify the new host as canonical in all page links or sitemaps." it means they want to to update internal links and your XML sitemaps, so it's more involved than simply updating your canonical tag. Basically anywhere your URLs are referenced should be updated to reflect your new www-canonical URL structure.
2- You may have provided that one tag as an example, but DO NOT put that exact tag on every page of your site. Doing so would point search engines to the homepage of your site from any page they visit. Canonical tags are basically soft redirects that search engines follow, so when a bot sees a canonical tag on one page that points to another page, they leave and go to where the canonical is pointing them. Google will often de-index URLs that canonicalize to another URL, which I'm assuming you don't want 