Folks, we are an open source club formed by students of Modern College of Engg.
We want to work for the kernel and applications development of linux.
So anybody can suggest where to start, how to head towards the kernel development, what are the resources required, etc...

You can get the latest sources from Kernel.org.

As far as direct kernel development goes you have to submit a considerable amount of quality patches before you can make any direct commits to the kernel source repository. See FAQ.
http://kernel.org/faq/#account

You should read the full FAQ so that you get a simple understanding of what the Kernel is about and definitely before you ask any questions. Because your question may already be answered (like the one above). The FAQ points you to sites like KernelNewbies for getting started.
http://kernel.org/faq/#kernelbuild

---------
edit: as far as applications development is concerned, take your pick

• I hope you contribute to Gimp because they're in dire need of help.
• The GNU is always looking for help.
• I am eventually going to be porting Enchanted Keyfinder to Linux for Windows recovery.
• There's projects in Google Code.
• Projects on SourceForge.
• Projects on Github
• Google open source project hosting and you'll find a whole slew of websites which host thousands and even millions of projects which develop applications that are run on Linux.

Your tasks can range anywhere from the actual application development all the way up to designing/maintaining the website, writing documentation, or even translating projects into other languages. The possibilities are only limited by your imagination. If there's a part you think you can contribute then write patches, do work, and you'll eventually be recognized for it.

SAM

hey that was too helpful! thanks bro!

and did you read this: http://www.tldp.org/HOWTO/User-Group-HOWTO.html, as pointed out by XavierP?

Also see: http://kernelnewbies.org/
Look for parts that need help, even if they're boring.
Writing documentation/man-pages is always a good start...

@Anisha: your link doesn't seem to work.

It is working very properly for me.

Works for me too....