Sonar X1 Producer Clipping

If its in the red only that may not be clipping. If you see a red indicator at the top of the meter and it stays on that is the clipping indicator.

When recording with Sonar X1 adjust the level on your audio interface not the record fader in Sonar. If its showing a too hot signal lower the output from the hardware.

Sonar does not control record levels.

Is there any possibility that I can change the level settings in sonar?? Because vocals sound better from the headphones out, then when it is played back on sonar.

In the Tascam unit you can set the monitor level independent from the record level. Keep in mind monitor level is something different than play-back level. It is fully possible to set the monitor level very low and the record level too high - resulting in a too high level for Sonar. Do not look at the clipping indicator on your unit - this only indicates/gives a warning when your input signal is too loud but don't say anything about the record level. Just carefully adjust the record level on the unit until it looks right on the record level indicators in Sonar. Keep in mind you do not record "as high/hot as possible", but leave enough headroom to avoid distortion.