If the person who is deceased is wearing clothes for a traditional funeral an then cremation takes place.
Then yes the clothes can remain on the body and be cremated with the body.
Most times bodies are cremated with the clothes on which is perfectly fine or the clothes can be removed and the body cremated without the clothes.
The clothing is optional for cremation and if the body does not have clothes on then the body can be cremated without the clothes.
If the body has clothes on then the body can be cremated with the clothing on.
It's all a personal choice as to whether or not clothes are wanted on while the body is going through cremation.