Dear Shubham,
Please look in the following file in your xAct installation: xAct/Documentation/English/xPertDoc.nb . In that file, look in Section 6: Background field perturbations. That shows an example using the very simple rule:
bgfield = h[LI[order_], __] :> 0 /; order > 1;
This rule annihilates all instances of h^2, h^3, etc. (anything beyond h^1). Using this rule, you can use xPert's general perturbation theory to implement the "background field" formalism.
As for your earlier question, I often do something as follows. I let deltag[LI[order], -a, -b] be the perturbation to the metric, but since it's often more convenient to use the trace-reversed metric perturbation, I define another tensor field barh[-a, -b] and make rules to go back and forth between deltag[LI[1], -a, -b] and barh[-a,-b]. Then I just use PrintAs[barh] to print it as an h with a bar on top.
But for your purposes, if you just want h instead of the trace reverse, it's simple to just introduce another tensor field without the LI label index, so there's no superscript 1 in all your expressions.
Good luck
Leo