"Is decimal point allowed in the identity column?" .
The identity column can never have any decimal points. It is a whole number. The decimal datatype can be used to have a bigger number in the identity column as decimal can have maximum of 38 digits.
The following are the code to create an identity column with decimal datatype
1 Specify scale as 0
declare @t table(i decimal(38,0) identity(1,1))
insert into @t default values
select * from @t
2 Omit scale part
declare @t table(i decimal(38) identity(1,1))
insert into @t default values
select * from @t
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