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<PAGE> PAGE 2
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<PAGE> PAGE 3
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SIGNATURE STEVE KEANE
TITLE GENERAL COUNSEL
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<NAME>
<SERIES>
<NUMBER> 001
<NAME> Federated Income Trust Insitutional Shares
<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> Jan-31-1999
<PERIOD-END> Jan-31-1999
<INVESTMENTS-AT-COST> 901,159,494
<INVESTMENTS-AT-VALUE> 905,175,944
<RECEIVABLES> 80,947,690
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,916
<TOTAL-ASSETS> 986,125,550
<PAYABLE-FOR-SECURITIES> 222,255,383
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,636,083
<TOTAL-LIABILITIES> 230,891,466
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 851,094,909
<SHARES-COMMON-STOCK> 67,661,879
<SHARES-COMMON-PRIOR> 71,939,256
<ACCUMULATED-NII-CURRENT> 98,490
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (99,975,765)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,016,450
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<DIVIDEND-INCOME> 0
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<OTHER-INCOME> 0
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<NET-INVESTMENT-INCOME> 46,145,357
<REALIZED-GAINS-CURRENT> 6,501,645
<APPREC-INCREASE-CURRENT> (4,188,194)
<NET-CHANGE-FROM-OPS> 48,458,808
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (43,354,300)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 14,248,595
<NUMBER-OF-SHARES-REDEEMED> (19,606,420)
<SHARES-REINVESTED> 1,080,448
<NET-CHANGE-IN-ASSETS> (34,597,238)
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> 0
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<PER-SHARE-GAIN-APPREC> 0.030
<PER-SHARE-DIVIDEND> (0.620)
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<EXPENSE-RATIO> 0.57
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<AVG-DEBT-PER-SHARE> 0.000
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<NAME>
<SERIES>
<NUMBER> 002
<NAME> Federated Income Trust Insitutional Service Shares
<S> <C>
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<PERIOD-END> Jan-31-1999
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<INVESTMENTS-AT-VALUE> 905,175,944
<RECEIVABLES> 80,947,690
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,916
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<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 230,891,466
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 851,094,909
<SHARES-COMMON-STOCK> 4,896,736
<SHARES-COMMON-PRIOR> 4,184,844
<ACCUMULATED-NII-CURRENT> 98,490
<OVERDISTRIBUTION-NII> 0
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<OVERDISTRIBUTION-GAINS> 0
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<DISTRIBUTIONS-OF-INCOME> (2,791,057)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,459,104
<NUMBER-OF-SHARES-REDEEMED> (872,099)
<SHARES-REINVESTED> 124,887
<NET-CHANGE-IN-ASSETS> (34,597,238)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (106,156,934)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,081,059
<AVERAGE-NET-ASSETS> 47,965,605
<PER-SHARE-NAV-BEGIN> 10.380
<PER-SHARE-NII> 0.600
<PER-SHARE-GAIN-APPREC> 0.030
<PER-SHARE-DIVIDEND> 0.000
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<PER-SHARE-NAV-END> 10.410
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<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
Federated Income Trust:
In planning and performing our audit of the financial statements of
Federated Income Trust (the "Trust") for the year ended January 31, 1999
(on which we have issued our reports dated March 19, 1999), we considered
its internal control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on the Trust's
internal control.
The management of the Trust is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related
costs of controls. Generally, controls that are relevant to an audit pertain
to the entity's objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of assets
against unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, errors or fraud
may occur and not be detected. Also, projection of any evaluation
of internal control to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of the Trust's internal control would not necessarily
disclose all matters in internal control that might be material weaknesses
under standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce
to a relatively low level the risk that errors or fraud in amounts that
would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted
no matters involving the Trust's internal control and its operation,
including controls for safeguarding securities, that we consider to be
material weaknesses as defined above as of January 31, 1999.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission and is not intended to be and
should not be used by anyone other than these specified parties.
March 19, 1999
