PUTNAM TAX EXEMPT INCOME FUND
NSAR-B, 1998-11-25
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<PAGE>      PAGE  1
000 B000000 09/30/98
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001 A000000 PUTNAM TAX EXEMPT INCOME FUND
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002 A000000 ONE POST OFFICE SQUARE
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020 A000002 MERRILL LYNCH, PEIRCE, FENNER, & SMITH, INC.
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020 C000002     31
020 A000003 FIMAT FUTURES USA INC.
020 C000003     11
020 A000004 DE ZOETE & BEVAN
020 C000004     10
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020 C000005      8
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020 C000006      8
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022 A000006 BEAR STERNS & CO.
022 B000006 13-4946705
022 C000006     76518
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022 A000009 BANK OF NEW YORK (THE)
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022 C000009     39300
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022 A000010 WILLIAM E. SIMON & SONS, INC.
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SIGNATURE   PAUL BUCAVALAS                               
TITLE       MANAGING DIRECTOR   
 

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
Putnam Tax Exempt Income Fund
</LEGEND>
<SERIES>
   <NUMBER> 3
   <NAME> CLASS A
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          SEP-30-1998
<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                    2,046,140,797
<INVESTMENTS-AT-VALUE>                   2,265,745,949
<RECEIVABLES>                               41,777,180
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                           2,307,523,129
<PAYABLE-FOR-SECURITIES>                    37,328,733
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                   12,076,259
<TOTAL-LIABILITIES>                         49,404,992
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                 2,073,489,075
<SHARES-COMMON-STOCK>                      214,844,758
<SHARES-COMMON-PRIOR>                      225,313,784
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                     (1,215,384)
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                  (26,309,481)
<ACCUM-APPREC-OR-DEPREC>                   212,153,927
<NET-ASSETS>                             2,258,118,137
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                          130,299,437
<OTHER-INCOME>                                       0
<EXPENSES-NET>                              19,836,013
<NET-INVESTMENT-INCOME>                    110,463,424
<REALIZED-GAINS-CURRENT>                    10,644,394
<APPREC-INCREASE-CURRENT>                   37,008,150
<NET-CHANGE-FROM-OPS>                      158,115,968
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                (101,505,109)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                     18,804,997
<NUMBER-OF-SHARES-REDEEMED>               (35,454,034)
<SHARES-REINVESTED>                          6,180,011
<NET-CHANGE-IN-ASSETS>                    (50,457,507)
<ACCUMULATED-NII-PRIOR>                      1,197,087
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<OVERDIST-NET-GAINS-PRIOR>                (36,920,088)
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                             20,132,876
<AVERAGE-NET-ASSETS>                     2,017,917,312
<PER-SHARE-NAV-BEGIN>                             9.12
<PER-SHARE-NII>                                    .45
<PER-SHARE-GAIN-APPREC>                            .19
<PER-SHARE-DIVIDEND>                             (.46)
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               9.30
<EXPENSE-RATIO>                                    .81
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
Putnam Tax Exempt Income Fund
</LEGEND>
<SERIES>
   <NUMBER> 3
   <NAME> CLASS B
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          SEP-30-1998
<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                    2,046,140,797
<INVESTMENTS-AT-VALUE>                   2,265,745,949
<RECEIVABLES>                               41,777,180
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                           2,307,523,129
<PAYABLE-FOR-SECURITIES>                    37,328,733
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                   12,076,259
<TOTAL-LIABILITIES>                         49,404,992
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                 2,073,489,075
<SHARES-COMMON-STOCK>                       26,834,998
<SHARES-COMMON-PRIOR>                       26,957,682
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                     (1,215,384)
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                  (26,309,481)
<ACCUM-APPREC-OR-DEPREC>                   212,153,927
<NET-ASSETS>                             2,258,118,137
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                          130,299,437
<OTHER-INCOME>                                       0
<EXPENSES-NET>                              19,836,013
<NET-INVESTMENT-INCOME>                    110,463,424
<REALIZED-GAINS-CURRENT>                    10,644,394
<APPREC-INCREASE-CURRENT>                   37,008,150
<NET-CHANGE-FROM-OPS>                      158,115,968
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                 (10,917,992)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                      4,568,920
<NUMBER-OF-SHARES-REDEEMED>                (5,422,107)
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<NET-CHANGE-IN-ASSETS>                    (50,457,507)
<ACCUMULATED-NII-PRIOR>                      1,197,087
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<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                (36,920,088)
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                             20,132,876
<AVERAGE-NET-ASSETS>                       249,445,062
<PER-SHARE-NAV-BEGIN>                             9.12
<PER-SHARE-NII>                                    .39
<PER-SHARE-GAIN-APPREC>                            .19
<PER-SHARE-DIVIDEND>                             (.40)
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               9.30
<EXPENSE-RATIO>                                   1.46
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
Putnam Tax Exempt Income Fund
</LEGEND>
<SERIES>
   <NUMBER> 3
   <NAME> CLASS M
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          SEP-30-1998
<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                    2,046,140,797
<INVESTMENTS-AT-VALUE>                   2,265,745,949
<RECEIVABLES>                               41,777,180
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                           2,307,523,129
<PAYABLE-FOR-SECURITIES>                    37,328,733
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                   12,076,259
<TOTAL-LIABILITIES>                         49,404,992
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                 2,073,489,075
<SHARES-COMMON-STOCK>                        1,093,261
<SHARES-COMMON-PRIOR>                          906,006
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                     (1,215,384)
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                  (26,309,481)
<ACCUM-APPREC-OR-DEPREC>                   212,153,927
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<DIVIDEND-INCOME>                                    0
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<APPREC-INCREASE-CURRENT>                   37,008,150
<NET-CHANGE-FROM-OPS>                      158,115,968
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                    (452,794)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        330,633
<NUMBER-OF-SHARES-REDEEMED>                  (176,950)
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<NET-CHANGE-IN-ASSETS>                    (50,457,507)
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<ACCUMULATED-GAINS-PRIOR>                            0
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<OVERDIST-NET-GAINS-PRIOR>                (36,920,088)
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<INTEREST-EXPENSE>                                   0
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<AVERAGE-NET-ASSETS>                         9,616,774
<PER-SHARE-NAV-BEGIN>                             9.14
<PER-SHARE-NII>                                    .43
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<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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