What is the sharia ruling concerning hanging an art canvas having some cartoon figures for the kids or for decorating the house?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah and that Muhammad, sallallaahu ʻalayhi wa sallam, is His slave and Messenger. 

If these canvases have images of living beings, then it is impermissible to hang them given the evidence indicating the prohibition in this regard and the command to obliterate such images. The Prophet, sallallaahu ʻalayhi wa sallam, forbade ʻAa'ishah from hanging what has images and tore the curtain bearing such images. It was narrated on the authority of ʻAa'ishah that she hung a curtain decorated with images (of animals) on a cupboard. The Prophet, sallallaahu ʻalayhi wa sallam, tore that curtain up, and she turned it into two cushions which remained in the house for the Prophet, sallallaahu ʻalayhi wa sallam, to sit on. [Al-Bukhari] An-Nawawi commented on the hadeeth saying, “i.e. he tore the images that were on it and destroyed them.”

This indicates the prohibition of hanging images of animate beings and also that it is permissible to use them in case they are treated in a disrespectful way (such as images on carpets and cushions).

The Prophet, sallallaahu ʻalayhi wa sallam, said, “The angels do not enter a house in which there is a dog or an image.” [Al-Bukhari and Muslim]. Moreover, it has been narrated on the authority of ʻAli that the Prophet, sallallaahu ʻalayhi wa sallam, said to him, “(Do not leave) a picture without obliterating it.” [Muslim]

For more benefit, please refer to fatwa 135486.

Allaah knows best.