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<PAGE> PAGE 7
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<PAGE> PAGE 13
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<PAGE> PAGE 17
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<PAGE> PAGE 19
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<PAGE> PAGE 20
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<PAGE> PAGE 21
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061 000800 1000
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064 A000800 N
064 B000800 N
066 A000800 N
067 000800 N
068 A000800 N
068 B000800 N
069 000800 N
070 A010800 Y
070 A020800 Y
070 B010800 N
070 B020800 N
070 C010800 Y
070 C020800 N
070 D010800 N
070 D020800 N
070 E010800 N
070 E020800 N
070 F010800 N
070 F020800 N
070 G010800 Y
070 G020800 Y
070 H010800 N
<PAGE> PAGE 22
070 H020800 N
070 I010800 Y
070 I020800 N
070 J010800 Y
070 J020800 Y
070 K010800 N
070 K020800 N
070 L010800 Y
070 L020800 Y
070 M010800 Y
070 M020800 Y
070 N010800 Y
070 N020800 N
070 O010800 Y
070 O020800 N
070 P010800 Y
070 P020800 N
070 Q010800 N
070 Q020800 N
070 R010800 N
070 R020800 N
071 A000800 1102
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<PAGE> PAGE 23
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028 A010900 5661
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<PAGE> PAGE 24
028 B040900 55152
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<PAGE> PAGE 25
047 000900 Y
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048 H020900 0.000
048 I010900 0
048 I020900 0.000
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062 A000900 Y
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062 P000900 40.3
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063 A000900 0
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064 A000900 N
064 B000900 N
066 A000900 Y
066 F000900 Y
067 000900 N
068 A000900 N
068 B000900 N
<PAGE> PAGE 26
069 000900 N
070 A010900 Y
070 A020900 Y
070 B010900 Y
070 B020900 N
070 C010900 Y
070 C020900 N
070 D010900 Y
070 D020900 N
070 E010900 Y
070 E020900 N
070 F010900 Y
070 F020900 N
070 G010900 Y
070 G020900 N
070 H010900 Y
070 H020900 N
070 I010900 N
070 I020900 N
070 J010900 N
070 J020900 N
070 K010900 N
070 K020900 N
070 L010900 Y
070 L020900 Y
070 M010900 N
070 M020900 N
070 N010900 Y
070 N020900 Y
070 O010900 Y
070 O020900 Y
070 P010900 N
070 P020900 N
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070 Q020900 N
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070 R020900 N
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<PAGE> PAGE 27
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<PAGE> PAGE 28
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<PAGE> PAGE 29
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<PAGE> PAGE 30
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<PAGE> PAGE 31
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<PAGE> PAGE 32
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SIGNATURE THOMAS M. REYNOLDS
TITLE CONTROLLER
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 4
[NAME] TAX-EXEMPT INCOME FUND, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 781,755,958
[INVESTMENTS-AT-VALUE] 833,867,742
[RECEIVABLES] 20,157,616
[ASSETS-OTHER] 8,047
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 854,033,405
[PAYABLE-FOR-SECURITIES] 35,709,657
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,764,869
[TOTAL-LIABILITIES] 37,474,526
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 757,465,826
[SHARES-COMMON-STOCK] 14,030,744
[SHARES-COMMON-PRIOR] 13,376,651
[ACCUMULATED-NII-CURRENT] 150,842
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 7,132,111
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 52,111,784
[NET-ASSETS] 816,558,879
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 53,991,911
[OTHER-INCOME] 0
[EXPENSES-NET] 10,047,253
[NET-INVESTMENT-INCOME] 43,944,658
[REALIZED-GAINS-CURRENT] 10,115,509
[APPREC-INCREASE-CURRENT] 26,295,426
[NET-CHANGE-FROM-OPS] 80,354,593
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 13,415,256
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 48,988,072
[NUMBER-OF-SHARES-REDEEMED] 45,394,525
[SHARES-REINVESTED] 7,854,117
[NET-CHANGE-IN-ASSETS] (68,763,981)
[ACCUMULATED-NII-PRIOR] 71,821
[ACCUMULATED-GAINS-PRIOR] (2,982,398)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 3,395,338
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 10,047,253
[AVERAGE-NET-ASSETS] 240,260,772
[PER-SHARE-NAV-BEGIN] 17.31
[PER-SHARE-NII] 00.97
[PER-SHARE-GAIN-APPREC] 00.77
[PER-SHARE-DIVIDEND] 00.98
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.07
[EXPENSE-RATIO] 00.83
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 4
[NAME] TAX-EXEMPT INCOME FUND, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 781,755,958
[INVESTMENTS-AT-VALUE] 833,867,742
[RECEIVABLES] 20,157,616
[ASSETS-OTHER] 8,047
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 854,033,405
[PAYABLE-FOR-SECURITIES] 35,709,657
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,764,869
[TOTAL-LIABILITIES] 37,474,526
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 757,465,826
[SHARES-COMMON-STOCK] 31,084,397
[SHARES-COMMON-PRIOR] 37,708,244
[ACCUMULATED-NII-CURRENT] 150,842
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 7,132,111
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 52,111,784
[NET-ASSETS] 816,558,879
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 53,991,911
[OTHER-INCOME] 0
[EXPENSES-NET] 10,047,253
[NET-INVESTMENT-INCOME] 43,944,658
[REALIZED-GAINS-CURRENT] 10,115,509
[APPREC-INCREASE-CURRENT] 26,295,426
[NET-CHANGE-FROM-OPS] 80,354,593
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 30,720,549
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 15,762,835
[NUMBER-OF-SHARES-REDEEMED] 148,626,196
[SHARES-REINVESTED] 16,286,642
[NET-CHANGE-IN-ASSETS] (68,763,981)
[ACCUMULATED-NII-PRIOR] 71,821
[ACCUMULATED-GAINS-PRIOR] (2,982,398)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 3,395,338
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 10,047,253
[AVERAGE-NET-ASSETS] 607,766,175
[PER-SHARE-NAV-BEGIN] 17.32
[PER-SHARE-NII] 00.89
[PER-SHARE-GAIN-APPREC] 00.77
[PER-SHARE-DIVIDEND] 00.89
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.09
[EXPENSE-RATIO] 01.32
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 4
[NAME] TAX-EXEMPT INCOME FUND, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 781,755,958
[INVESTMENTS-AT-VALUE] 833,867,742
[RECEIVABLES] 20,157,616
[ASSETS-OTHER] 8,047
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 854,033,405
[PAYABLE-FOR-SECURITIES] 35,709,657
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,764,869
[TOTAL-LIABILITIES] 37,474,526
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 757,465,826
[SHARES-COMMON-STOCK] 41,636
[SHARES-COMMON-PRIOR] 31,538
[ACCUMULATED-NII-CURRENT] 150,842
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 7,132,111
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 52,111,784
[NET-ASSETS] 816,558,879
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 53,991,911
[OTHER-INCOME] 0
[EXPENSES-NET] 10,047,253
[NET-INVESTMENT-INCOME] 43,944,658
[REALIZED-GAINS-CURRENT] 10,115,509
[APPREC-INCREASE-CURRENT] 26,295,426
[NET-CHANGE-FROM-OPS] 80,354,593
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 31,516
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 192,593
[NUMBER-OF-SHARES-REDEEMED] 39,494
[SHARES-REINVESTED] 24,703
[NET-CHANGE-IN-ASSETS] (68,763,981)
[ACCUMULATED-NII-PRIOR] 71,821
[ACCUMULATED-GAINS-PRIOR] (2,982,398)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 3,395,338
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 10,047,253
[AVERAGE-NET-ASSETS] 621,110
[PER-SHARE-NAV-BEGIN] 17.31
[PER-SHARE-NII] 00.87
[PER-SHARE-GAIN-APPREC] 00.78
[PER-SHARE-DIVIDEND] 00.89
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.07
[EXPENSE-RATIO] 01.40
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 5
[NAME] EXCHANGE RESERVE, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 122,336,236
[INVESTMENTS-AT-VALUE] 122,336,236
[RECEIVABLES] 412,905
[ASSETS-OTHER] 364,519
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 123,113,660
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 390,980
[TOTAL-LIABILITIES] 390,980
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 122,761,257
[SHARES-COMMON-STOCK] 116,954,867
[SHARES-COMMON-PRIOR] 150,476,738
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 122,722,680
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 8,137,141
[OTHER-INCOME] 0
[EXPENSES-NET] 1,721,566
[NET-INVESTMENT-INCOME] 6,415,575
[REALIZED-GAINS-CURRENT] 16,879
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 6,432,454
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 5,088,527
[DISTRIBUTIONS-OF-GAINS] 16,010
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 352,876,972
[NUMBER-OF-SHARES-REDEEMED] 391,663,064
[SHARES-REINVESTED] 5,264,223
[NET-CHANGE-IN-ASSETS] (37,142,657)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 442,557
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,721,566
[AVERAGE-NET-ASSETS] 140,241,983
[PER-SHARE-NAV-BEGIN] 1.00
[PER-SHARE-NII] 0.04
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0.04
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 1.00
[EXPENSE-RATIO] 1.16
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 5
[NAME] EXCHANGE RESERVE, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 122,336,236
[INVESTMENTS-AT-VALUE] 122,336,236
[RECEIVABLES] 412,905
[ASSETS-OTHER] 364,519
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 123,113,660
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 390,980
[TOTAL-LIABILITIES] 390,980
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 122,761,257
[SHARES-COMMON-STOCK] 5,806,390
[SHARES-COMMON-PRIOR] 9,444,056
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 122,722,680
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 8,137,141
[OTHER-INCOME] 0
[EXPENSES-NET] 1,721,566
[NET-INVESTMENT-INCOME] 6,415,575
[REALIZED-GAINS-CURRENT] 16,879
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 6,432,454
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 327,048
[DISTRIBUTIONS-OF-GAINS] 869
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 96,618,021
[NUMBER-OF-SHARES-REDEEMED] 100,552,696
[SHARES-REINVESTED] 297,008
[NET-CHANGE-IN-ASSETS] (37,142,657)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 442,557
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,721,566
[AVERAGE-NET-ASSETS] 7,573,698
[PER-SHARE-NAV-BEGIN] 1.00
[PER-SHARE-NII] 0.04
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0.04
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 1.00
[EXPENSE-RATIO] 1.16
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 6
[NAME] CONVERTIBLE FUND, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 100,093,496
[INVESTMENTS-AT-VALUE] 110,955,125
[RECEIVABLES] 1,282,230
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 112,237,355
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 174,874
[TOTAL-LIABILITIES] 174,874
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 95,567,016
[SHARES-COMMON-STOCK] 2,084,987
[SHARES-COMMON-PRIOR] 2,227,896
[ACCUMULATED-NII-CURRENT] 178,445
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 5,455,391
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 10,861,629
[NET-ASSETS] 112,062,481
[DIVIDEND-INCOME] 1,996,339
[INTEREST-INCOME] 3,787,407
[OTHER-INCOME] 0
[EXPENSES-NET] 1,383,458
[NET-INVESTMENT-INCOME] 4,400,288
[REALIZED-GAINS-CURRENT] 7,647,258
[APPREC-INCREASE-CURRENT] 11,619,495
[NET-CHANGE-FROM-OPS] 23,667,041
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,593,314
[DISTRIBUTIONS-OF-GAINS] 763,044
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 163,074
[NUMBER-OF-SHARES-REDEEMED] 422,237
[SHARES-REINVESTED] 166,254
[NET-CHANGE-IN-ASSETS] 7,569,796
[ACCUMULATED-NII-PRIOR] 29,042
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 130,406
[GROSS-ADVISORY-FEES] 489,663
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,383,458
[AVERAGE-NET-ASSETS] 35,754,575
[PER-SHARE-NAV-BEGIN] 15.66
[PER-SHARE-NII] 00.78
[PER-SHARE-GAIN-APPREC] 03.28
[PER-SHARE-DIVIDEND] 00.75
[PER-SHARE-DISTRIBUTIONS] 00.36
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.61
[EXPENSE-RATIO] 01.27
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 6
[NAME] CONVERTIBLE FUND, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 100,093,496
[INVESTMENTS-AT-VALUE] 110,955,125
[RECEIVABLES] 1,282,230
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 112,237,355
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 174,874
[TOTAL-LIABILITIES] 174,874
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 95,567,016
[SHARES-COMMON-STOCK] 2,307,864
[SHARES-COMMON-PRIOR] 2,709,231
[ACCUMULATED-NII-CURRENT] 178,445
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 5,455,391
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 10,861,629
[NET-ASSETS] 112,062,481
[DIVIDEND-INCOME] 1,996,339
[INTEREST-INCOME] 3,787,407
[OTHER-INCOME] 0
[EXPENSES-NET] 1,383,458
[NET-INVESTMENT-INCOME] 4,400,288
[REALIZED-GAINS-CURRENT] 7,647,258
[APPREC-INCREASE-CURRENT] 11,619,495
[NET-CHANGE-FROM-OPS] 23,667,041
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,697,715
[DISTRIBUTIONS-OF-GAINS] 942,796
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 244,740
[NUMBER-OF-SHARES-REDEEMED] 770,612
[SHARES-REINVESTED] 124,505
[NET-CHANGE-IN-ASSETS] 7,569,796
[ACCUMULATED-NII-PRIOR] 29,042
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 130,406
[GROSS-ADVISORY-FEES] 489,663
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,383,458
[AVERAGE-NET-ASSETS] 42,462,924
[PER-SHARE-NAV-BEGIN] 15.66
[PER-SHARE-NII] 00.69
[PER-SHARE-GAIN-APPREC] 03.28
[PER-SHARE-DIVIDEND] 00.67
[PER-SHARE-DISTRIBUTIONS] 00.36
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.60
[EXPENSE-RATIO] 01.77
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 6
[NAME] CONVERTIBLE FUND, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 100,093,496
[INVESTMENTS-AT-VALUE] 110,955,125
[RECEIVABLES] 1,282,230
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 112,237,355
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 174,874
[TOTAL-LIABILITIES] 174,874
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 95,567,016
[SHARES-COMMON-STOCK] 67,377
[SHARES-COMMON-PRIOR] 40,988
[ACCUMULATED-NII-CURRENT] 178,445
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 5,455,391
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 10,861,629
[NET-ASSETS] 112,062,481
[DIVIDEND-INCOME] 1,996,339
[INTEREST-INCOME] 3,787,407
[OTHER-INCOME] 0
[EXPENSES-NET] 1,383,458
[NET-INVESTMENT-INCOME] 4,400,288
[REALIZED-GAINS-CURRENT] 7,647,258
[APPREC-INCREASE-CURRENT] 11,619,495
[NET-CHANGE-FROM-OPS] 23,667,041
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 38,068
[DISTRIBUTIONS-OF-GAINS] 17,371
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 35,625
[NUMBER-OF-SHARES-REDEEMED] 12,011
[SHARES-REINVESTED] 2,775
[NET-CHANGE-IN-ASSETS] 7,569,796
[ACCUMULATED-NII-PRIOR] 29,042
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 130,406
[GROSS-ADVISORY-FEES] 489,663
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,383,458
[AVERAGE-NET-ASSETS] 927,820
[PER-SHARE-NAV-BEGIN] 15.64
[PER-SHARE-NII] 00.67
[PER-SHARE-GAIN-APPREC] 03.31
[PER-SHARE-DIVIDEND] 00.68
[PER-SHARE-DISTRIBUTIONS] 00.36
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.58
[EXPENSE-RATIO] 01.74
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 6
[NAME] CONVERTIBLE FUND, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 100,093,496
[INVESTMENTS-AT-VALUE] 110,955,125
[RECEIVABLES] 1,282,230
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 112,237,355
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 174,874
[TOTAL-LIABILITIES] 174,874
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 95,567,016
[SHARES-COMMON-STOCK] 1,558,358
[SHARES-COMMON-PRIOR] 586,129
[ACCUMULATED-NII-CURRENT] 178,445
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 5,455,391
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 10,861,629
[NET-ASSETS] 112,062,481
[DIVIDEND-INCOME] 1,996,339
[INTEREST-INCOME] 3,787,407
[OTHER-INCOME] 0
[EXPENSES-NET] 1,383,458
[NET-INVESTMENT-INCOME] 4,400,288
[REALIZED-GAINS-CURRENT] 7,647,258
[APPREC-INCREASE-CURRENT] 11,619,495
[NET-CHANGE-FROM-OPS] 23,667,041
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 921,788
[DISTRIBUTIONS-OF-GAINS] 338,250
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 972,230
[NUMBER-OF-SHARES-REDEEMED] 1
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 7,569,796
[ACCUMULATED-NII-PRIOR] 29,042
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 130,406
[GROSS-ADVISORY-FEES] 489,663
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,383,458
[AVERAGE-NET-ASSETS] 19,123,912
[PER-SHARE-NAV-BEGIN] 15.68
[PER-SHARE-NII] 00.83
[PER-SHARE-GAIN-APPREC] 03.31
[PER-SHARE-DIVIDEND] 00.80
[PER-SHARE-DISTRIBUTIONS] 00.36
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.66
[EXPENSE-RATIO] 00.85
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,226,699,765
[INVESTMENTS-AT-VALUE] 1,289,995,819
[RECEIVABLES] 27,487,063
[ASSETS-OTHER] 708,008
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,318,190,890
[PAYABLE-FOR-SECURITIES] 27,523,314
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,847,950
[TOTAL-LIABILITIES] 29,371,264
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,448,477,370
[SHARES-COMMON-STOCK] 35,865,802
[SHARES-COMMON-PRIOR] 13,069,698
[ACCUMULATED-NII-CURRENT] 105,547,558
[OVERDISTRIBUTION-NII] 873,947
[ACCUMULATED-NET-GAINS] (223,823,877)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 63,292,186
[NET-ASSETS] 1,288,819,626
[DIVIDEND-INCOME] 7,487,698
[INTEREST-INCOME] 112,951,939
[OTHER-INCOME] 0
[EXPENSES-NET] 14,892,079
[NET-INVESTMENT-INCOME] 105,547,558
[REALIZED-GAINS-CURRENT] 15,929,257
[APPREC-INCREASE-CURRENT] 67,808,223
[NET-CHANGE-FROM-OPS] 189,285,038
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 36,188,869
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 11,251,248
[NUMBER-OF-SHARES-REDEEMED] 8,215,949
[SHARES-REINVESTED] 1,783,139
[NET-CHANGE-IN-ASSETS] 324,444,607
[ACCUMULATED-NII-PRIOR] 84,120,788
[ACCUMULATED-GAINS-PRIOR] 5,895,839
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 7,904,967
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 14,892,079
[AVERAGE-NET-ASSETS] 382,200,624
[PER-SHARE-NAV-BEGIN] 10.98
[PER-SHARE-NII] 01.09
[PER-SHARE-GAIN-APPREC] 00.83
[PER-SHARE-DIVIDEND] 01.08
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.82
[EXPENSE-RATIO] 01.06
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,226,699,765
[INVESTMENTS-AT-VALUE] 1,289,995,819
[RECEIVABLES] 27,487,063
[ASSETS-OTHER] 708,008
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,318,190,890
[PAYABLE-FOR-SECURITIES] 27,523,314
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,847,950
[TOTAL-LIABILITIES] 29,371,264
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,448,477,370
[SHARES-COMMON-STOCK] 57,550,302
[SHARES-COMMON-PRIOR] 17,154,346
[ACCUMULATED-NII-CURRENT] 105,547,558
[OVERDISTRIBUTION-NII] 873,947
[ACCUMULATED-NET-GAINS] (223,823,877)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 63,292,186
[NET-ASSETS] 1,288,819,626
[DIVIDEND-INCOME] 7,487,698
[INTEREST-INCOME] 112,951,939
[OTHER-INCOME] 0
[EXPENSES-NET] 14,892,079
[NET-INVESTMENT-INCOME] 105,547,558
[REALIZED-GAINS-CURRENT] 15,929,257
[APPREC-INCREASE-CURRENT] 67,808,223
[NET-CHANGE-FROM-OPS] 189,285,038
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 55,915,052
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 14,926,125
[NUMBER-OF-SHARES-REDEEMED] 10,519,955
[SHARES-REINVESTED] 2,193,852
[NET-CHANGE-IN-ASSETS] 324,444,607
[ACCUMULATED-NII-PRIOR] 84,120,788
[ACCUMULATED-GAINS-PRIOR] 5,895,839
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 7,904,967
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 14,892,079
[AVERAGE-NET-ASSETS] 620,675,192
[PER-SHARE-NAV-BEGIN] 10.99
[PER-SHARE-NII] 01.03
[PER-SHARE-GAIN-APPREC] 00.83
[PER-SHARE-DIVIDEND] 01.02
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.83
[EXPENSE-RATIO] 01.55
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,226,699,765
[INVESTMENTS-AT-VALUE] 1,289,995,819
[RECEIVABLES] 27,487,063
[ASSETS-OTHER] 708,008
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,318,190,890
[PAYABLE-FOR-SECURITIES] 27,523,314
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,847,950
[TOTAL-LIABILITIES] 29,371,264
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,448,477,370
[SHARES-COMMON-STOCK] 3,752,857
[SHARES-COMMON-PRIOR] 2,537,474
[ACCUMULATED-NII-CURRENT] 105,547,558
[OVERDISTRIBUTION-NII] 873,947
[ACCUMULATED-NET-GAINS] (223,823,877)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 63,292,186
[NET-ASSETS] 1,288,819,626
[DIVIDEND-INCOME] 7,487,698
[INTEREST-INCOME] 112,951,939
[OTHER-INCOME] 0
[EXPENSES-NET] 14,892,079
[NET-INVESTMENT-INCOME] 105,547,558
[REALIZED-GAINS-CURRENT] 15,929,257
[APPREC-INCREASE-CURRENT] 67,808,223
[NET-CHANGE-FROM-OPS] 189,285,038
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 2,975,132
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 2,371,080
[NUMBER-OF-SHARES-REDEEMED] 681,148
[SHARES-REINVESTED] 149,311
[NET-CHANGE-IN-ASSETS] 324,444,607
[ACCUMULATED-NII-PRIOR] 84,120,788
[ACCUMULATED-GAINS-PRIOR] 5,895,839
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 7,904,967
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 14,892,079
[AVERAGE-NET-ASSETS] 32,433,514
[PER-SHARE-NAV-BEGIN] 11.00
[PER-SHARE-NII] 01.04
[PER-SHARE-GAIN-APPREC] 00.83
[PER-SHARE-DIVIDEND] 01.03
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.84
[EXPENSE-RATIO] 01.48
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,226,699,765
[INVESTMENTS-AT-VALUE] 1,289,995,819
[RECEIVABLES] 27,487,063
[ASSETS-OTHER] 708,008
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,318,190,890
[PAYABLE-FOR-SECURITIES] 27,523,314
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,847,950
[TOTAL-LIABILITIES] 29,371,264
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,448,477,370
[SHARES-COMMON-STOCK] 11,767,040
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 105,547,558
[OVERDISTRIBUTION-NII] 873,947
[ACCUMULATED-NET-GAINS] (223,823,877)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 63,292,186
[NET-ASSETS] 1,288,819,626
[DIVIDEND-INCOME] 7,487,698
[INTEREST-INCOME] 112,951,939
[OTHER-INCOME] 0
[EXPENSES-NET] 14,892,079
[NET-INVESTMENT-INCOME] 105,547,558
[REALIZED-GAINS-CURRENT] 15,929,257
[APPREC-INCREASE-CURRENT] 67,808,223
[NET-CHANGE-FROM-OPS] 189,285,038
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 9,351,733
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 16,943,643
[NUMBER-OF-SHARES-REDEEMED] 8,542,613
[SHARES-REINVESTED] 172,615
[NET-CHANGE-IN-ASSETS] 324,444,607
[ACCUMULATED-NII-PRIOR] 84,120,788
[ACCUMULATED-GAINS-PRIOR] 5,895,839
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 7,904,967
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 14,892,079
[AVERAGE-NET-ASSETS] 95,205,428
[PER-SHARE-NAV-BEGIN] 10.99
[PER-SHARE-NII] 01.12
[PER-SHARE-GAIN-APPREC] 00.84
[PER-SHARE-DIVIDEND] 01.11
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.84
[EXPENSE-RATIO] 00.73
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS Z
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,226,699,765
[INVESTMENTS-AT-VALUE] 1,289,995,819
[RECEIVABLES] 27,487,063
[ASSETS-OTHER] 708,008
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,318,190,890
[PAYABLE-FOR-SECURITIES] 27,523,314
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,847,950
[TOTAL-LIABILITIES] 29,371,264
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,448,477,370
[SHARES-COMMON-STOCK] 8,845
[SHARES-COMMON-PRIOR] 488
[ACCUMULATED-NII-CURRENT] 105,547,558
[OVERDISTRIBUTION-NII] 873,947
[ACCUMULATED-NET-GAINS] (223,823,877)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 63,292,186
[NET-ASSETS] 1,288,819,626
[DIVIDEND-INCOME] 7,487,698
[INTEREST-INCOME] 112,951,939
[OTHER-INCOME] 0
[EXPENSES-NET] 14,892,079
[NET-INVESTMENT-INCOME] 105,547,558
[REALIZED-GAINS-CURRENT] 15,929,257
[APPREC-INCREASE-CURRENT] 67,808,223
[NET-CHANGE-FROM-OPS] 189,285,038
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 263,576
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 872
[NUMBER-OF-SHARES-REDEEMED] 666,462
[SHARES-REINVESTED] 23,013
[NET-CHANGE-IN-ASSETS] 324,444,607
[ACCUMULATED-NII-PRIOR] 84,120,788
[ACCUMULATED-GAINS-PRIOR] 5,895,839
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 7,904,967
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 14,892,079
[AVERAGE-NET-ASSETS] 2,750,388
[PER-SHARE-NAV-BEGIN] 10.99
[PER-SHARE-NII] 01.12
[PER-SHARE-GAIN-APPREC] 00.80
[PER-SHARE-DIVIDEND] 01.11
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.80
[EXPENSE-RATIO] 00.75
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,066,173,488
[INVESTMENTS-AT-VALUE] 1,224,966,375
[RECEIVABLES] 38,630,411
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 29,993,400
[TOTAL-ASSETS] 1,293,590,186
[PAYABLE-FOR-SECURITIES] 10,409,500
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 35,759,245
[TOTAL-LIABILITIES] 46,168,745
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,064,068,242
[SHARES-COMMON-STOCK] 16,000,188
[SHARES-COMMON-PRIOR] 18,544,890
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 214,055
[ACCUMULATED-NET-GAINS] 24,774,367
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 158,792,887
[NET-ASSETS] 1,247,421,441
[DIVIDEND-INCOME] 44,390,148
[INTEREST-INCOME] 46,730,900
[OTHER-INCOME] 0
[EXPENSES-NET] 20,265,699
[NET-INVESTMENT-INCOME] 70,855,349
[REALIZED-GAINS-CURRENT] 24,744,410
[APPREC-INCREASE-CURRENT] 102,064,403
[NET-CHANGE-FROM-OPS] 197,664,162
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 14,047,843
[DISTRIBUTIONS-OF-GAINS] 5,741,304
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 3,016,148
[NUMBER-OF-SHARES-REDEEMED] 6,396,819
[SHARES-REINVESTED] 1,035,899
[NET-CHANGE-IN-ASSETS] (362,701,571)
[ACCUMULATED-NII-PRIOR] 1,876,841
[ACCUMULATED-GAINS-PRIOR] 32,887,187
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 6,431,624
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 20,265,699
[AVERAGE-NET-ASSETS] 257,644,392
[PER-SHARE-NAV-BEGIN] 14.57
[PER-SHARE-NII] 00.80
[PER-SHARE-GAIN-APPREC] 01.36
[PER-SHARE-DIVIDEND] 00.82
[PER-SHARE-DISTRIBUTIONS] 00.32
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 15.53
[EXPENSE-RATIO] 01.06
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,066,173,488
[INVESTMENTS-AT-VALUE] 1,224,966,375
[RECEIVABLES] 38,630,411
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 29,993,400
[TOTAL-ASSETS] 1,293,590,186
[PAYABLE-FOR-SECURITIES] 10,409,500
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 35,759,245
[TOTAL-LIABILITIES] 46,168,745
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,064,068,242
[SHARES-COMMON-STOCK] 61,280,779
[SHARES-COMMON-PRIOR] 90,334,939
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 214,055
[ACCUMULATED-NET-GAINS] 24,774,367
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 158,792,887
[NET-ASSETS] 1,247,421,441
[DIVIDEND-INCOME] 44,390,148
[INTEREST-INCOME] 46,730,900
[OTHER-INCOME] 0
[EXPENSES-NET] 20,265,699
[NET-INVESTMENT-INCOME] 70,855,349
[REALIZED-GAINS-CURRENT] 24,744,410
[APPREC-INCREASE-CURRENT] 102,064,403
[NET-CHANGE-FROM-OPS] 197,664,162
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 56,624,444
[DISTRIBUTIONS-OF-GAINS] 26,295,040
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,887,342
[NUMBER-OF-SHARES-REDEEMED] 35,244,383
[SHARES-REINVESTED] 4,302,881
[NET-CHANGE-IN-ASSETS] (362,701,571)
[ACCUMULATED-NII-PRIOR] 1,876,841
[ACCUMULATED-GAINS-PRIOR] 32,887,187
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 6,431,624
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 20,265,699
[AVERAGE-NET-ASSETS] 1,133,980,941
[PER-SHARE-NAV-BEGIN] 14.51
[PER-SHARE-NII] 00.73
[PER-SHARE-GAIN-APPREC] 01.35
[PER-SHARE-DIVIDEND] 00.75
[PER-SHARE-DISTRIBUTIONS] 00.32
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 15.53
[EXPENSE-RATIO] 01.52
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,066,173,488
[INVESTMENTS-AT-VALUE] 1,224,966,375
[RECEIVABLES] 38,630,411
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 29,993,400
[TOTAL-ASSETS] 1,293,590,186
[PAYABLE-FOR-SECURITIES] 10,409,500
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 35,759,245
[TOTAL-LIABILITIES] 46,168,745
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,064,068,242
[SHARES-COMMON-STOCK] 604,050
[SHARES-COMMON-PRIOR] 788,654
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 214,055
[ACCUMULATED-NET-GAINS] 24,774,367
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 158,792,887
[NET-ASSETS] 1,247,421,441
[DIVIDEND-INCOME] 44,390,148
[INTEREST-INCOME] 46,730,900
[OTHER-INCOME] 0
[EXPENSES-NET] 20,265,699
[NET-INVESTMENT-INCOME] 70,855,349
[REALIZED-GAINS-CURRENT] 24,744,410
[APPREC-INCREASE-CURRENT] 102,064,403
[NET-CHANGE-FROM-OPS] 197,664,162
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 533,096
[DISTRIBUTIONS-OF-GAINS] 236,427
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 87,875
[NUMBER-OF-SHARES-REDEEMED] 316,257
[SHARES-REINVESTED] 43,778
[NET-CHANGE-IN-ASSETS] (362,701,571)
[ACCUMULATED-NII-PRIOR] 1,876,841
[ACCUMULATED-GAINS-PRIOR] 32,887,187
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 6,431,624
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 20,265,699
[AVERAGE-NET-ASSETS] 10,551,224
[PER-SHARE-NAV-BEGIN] 14.51
[PER-SHARE-NII] 00.73
[PER-SHARE-GAIN-APPREC] 01.36
[PER-SHARE-DIVIDEND] 00.75
[PER-SHARE-DISTRIBUTIONS] 00.32
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 15.53
[EXPENSE-RATIO] 01.47
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,066,173,488
[INVESTMENTS-AT-VALUE] 1,224,966,375
[RECEIVABLES] 38,630,411
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 29,993,400
[TOTAL-ASSETS] 1,293,590,186
[PAYABLE-FOR-SECURITIES] 10,409,500
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 35,759,245
[TOTAL-LIABILITIES] 46,168,745
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,064,068,242
[SHARES-COMMON-STOCK] 1,585,529
[SHARES-COMMON-PRIOR] 524,592
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 214,055
[ACCUMULATED-NET-GAINS] 24,774,367
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 158,792,887
[NET-ASSETS] 1,247,421,441
[DIVIDEND-INCOME] 44,390,148
[INTEREST-INCOME] 46,730,900
[OTHER-INCOME] 0
[EXPENSES-NET] 20,265,699
[NET-INVESTMENT-INCOME] 70,855,349
[REALIZED-GAINS-CURRENT] 24,744,410
[APPREC-INCREASE-CURRENT] 102,064,403
[NET-CHANGE-FROM-OPS] 197,664,162
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 940,358
[DISTRIBUTIONS-OF-GAINS] 272,766
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,061,099
[NUMBER-OF-SHARES-REDEEMED] 169
[SHARES-REINVESTED] 7
[NET-CHANGE-IN-ASSETS] (362,701,571)
[ACCUMULATED-NII-PRIOR] 1,876,841
[ACCUMULATED-GAINS-PRIOR] 32,887,187
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 6,431,624
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 20,265,699
[AVERAGE-NET-ASSETS] 13,982,488
[PER-SHARE-NAV-BEGIN] 14.52
[PER-SHARE-NII] 00.83
[PER-SHARE-GAIN-APPREC] 01.38
[PER-SHARE-DIVIDEND] 00.85
[PER-SHARE-DISTRIBUTIONS] 00.32
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 15.56
[EXPENSE-RATIO] 00.67
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES, CLASS Z
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 1,066,173,488
[INVESTMENTS-AT-VALUE] 1,224,966,375
[RECEIVABLES] 38,630,411
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 29,993,400
[TOTAL-ASSETS] 1,293,590,186
[PAYABLE-FOR-SECURITIES] 10,409,500
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 35,759,245
[TOTAL-LIABILITIES] 46,168,745
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,064,068,242
[SHARES-COMMON-STOCK] 877,888
[SHARES-COMMON-PRIOR] 999,717
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 214,055
[ACCUMULATED-NET-GAINS] 24,774,367
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 158,792,887
[NET-ASSETS] 1,247,421,441
[DIVIDEND-INCOME] 44,390,148
[INTEREST-INCOME] 46,730,900
[OTHER-INCOME] 0
[EXPENSES-NET] 20,265,699
[NET-INVESTMENT-INCOME] 70,855,349
[REALIZED-GAINS-CURRENT] 24,744,410
[APPREC-INCREASE-CURRENT] 102,064,403
[NET-CHANGE-FROM-OPS] 197,664,162
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 800,504
[DISTRIBUTIONS-OF-GAINS] 311,693
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 89,172
[NUMBER-OF-SHARES-REDEEMED] 285,690
[SHARES-REINVESTED] 74,689
[NET-CHANGE-IN-ASSETS] (362,701,571)
[ACCUMULATED-NII-PRIOR] 1,876,841
[ACCUMULATED-GAINS-PRIOR] 32,887,187
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 6,431,624
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 20,265,699
[AVERAGE-NET-ASSETS] 16,014,718
[PER-SHARE-NAV-BEGIN] 14.52
[PER-SHARE-NII] 00.83
[PER-SHARE-GAIN-APPREC] 01.37
[PER-SHARE-DIVIDEND] 00.85
[PER-SHARE-DISTRIBUTIONS] 00.32
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 15.55
[EXPENSE-RATIO] 00.73
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 2,958,029,403
[INVESTMENTS-AT-VALUE] 3,025,560,107
[RECEIVABLES] 287,681,729
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,313,241,836
[PAYABLE-FOR-SECURITIES] 306,801,256
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 114,634,978
[TOTAL-LIABILITIES] 421,436,234
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 2,885,971,116
[SHARES-COMMON-STOCK] 33,385,804
[SHARES-COMMON-PRIOR] 25,930,321
[ACCUMULATED-NII-CURRENT] 946,253
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (76,038,767)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 80,927,000
[NET-ASSETS] 2,891,805,602
[DIVIDEND-INCOME] 5,810,138
[INTEREST-INCOME] 223,385,797
[OTHER-INCOME] 0
[EXPENSES-NET] 40,328,855
[NET-INVESTMENT-INCOME] 188,867,080
[REALIZED-GAINS-CURRENT] 53,421,481
[APPREC-INCREASE-CURRENT] 45,383,904
[NET-CHANGE-FROM-OPS] 98,805,385
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 19,754,055
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 13,256,070
[NUMBER-OF-SHARES-REDEEMED] 1,215,640
[SHARES-REINVESTED] 1,415,052
[NET-CHANGE-IN-ASSETS] 224,196,157
[ACCUMULATED-NII-PRIOR] 18,374,484
[ACCUMULATED-GAINS-PRIOR] (115,447,984)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 12,546,980
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 40,328,855
[AVERAGE-NET-ASSETS] 235,138,045
[PER-SHARE-NAV-BEGIN] 7.82
[PER-SHARE-NII] 0.57
[PER-SHARE-GAIN-APPREC] 0.29
[PER-SHARE-DIVIDEND] 0.67
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.01
[EXPENSE-RATIO] 1.03
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 2,958,029,403
[INVESTMENTS-AT-VALUE] 3,025,560,107
[RECEIVABLES] 287,681,729
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,313,241,836
[PAYABLE-FOR-SECURITIES] 306,801,256
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 114,634,978
[TOTAL-LIABILITIES] 421,436,234
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 2,885,971,116
[SHARES-COMMON-STOCK] 304,019,071
[SHARES-COMMON-PRIOR] 303,841,930
[ACCUMULATED-NII-CURRENT] 946,253
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (76,038,767)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 80,927,000
[NET-ASSETS] 2,891,805,602
[DIVIDEND-INCOME] 5,810,138
[INTEREST-INCOME] 223,385,797
[OTHER-INCOME] 0
[EXPENSES-NET] 40,328,855
[NET-INVESTMENT-INCOME] 188,867,080
[REALIZED-GAINS-CURRENT] 53,421,481
[APPREC-INCREASE-CURRENT] 45,383,904
[NET-CHANGE-FROM-OPS] 98,805,385
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 189,336,757
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 44,187,261
[NUMBER-OF-SHARES-REDEEMED] 56,866,196
[SHARES-REINVESTED] 12,856,077
[NET-CHANGE-IN-ASSETS] 224,196,157
[ACCUMULATED-NII-PRIOR] 18,374,484
[ACCUMULATED-GAINS-PRIOR] (115,447,984)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 12,546,980
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 40,328,855
[AVERAGE-NET-ASSETS] 2,424,324,690
[PER-SHARE-NAV-BEGIN] 7.83
[PER-SHARE-NII] 0.54
[PER-SHARE-GAIN-APPREC] 0.28
[PER-SHARE-DIVIDEND] 0.62
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.03
[EXPENSE-RATIO] 1.51
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 2,958,029,403
[INVESTMENTS-AT-VALUE] 3,025,560,107
[RECEIVABLES] 287,681,729
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,313,241,836
[PAYABLE-FOR-SECURITIES] 306,801,256
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 114,634,978
[TOTAL-LIABILITIES] 421,436,234
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 2,885,971,116
[SHARES-COMMON-STOCK] 10,427,596
[SHARES-COMMON-PRIOR] 5,403,149
[ACCUMULATED-NII-CURRENT] 946,253
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (76,038,767)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 80,927,000
[NET-ASSETS] 2,891,805,602
[DIVIDEND-INCOME] 5,810,138
[INTEREST-INCOME] 223,385,797
[OTHER-INCOME] 0
[EXPENSES-NET] 40,328,855
[NET-INVESTMENT-INCOME] 188,867,080
[REALIZED-GAINS-CURRENT] 53,421,481
[APPREC-INCREASE-CURRENT] 45,383,904
[NET-CHANGE-FROM-OPS] 98,805,385
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 4,874,120
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 5,723,599
[NUMBER-OF-SHARES-REDEEMED] 1,148,289
[SHARES-REINVESTED] 449,137
[NET-CHANGE-IN-ASSETS] 224,196,157
[ACCUMULATED-NII-PRIOR] 18,374,484
[ACCUMULATED-GAINS-PRIOR] (115,447,984)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 12,546,980
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 40,328,855
[AVERAGE-NET-ASSETS] 61,135,212
[PER-SHARE-NAV-BEGIN] 7.81
[PER-SHARE-NII] 0.55
[PER-SHARE-GAIN-APPREC] 0.27
[PER-SHARE-DIVIDEND] 0.62
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.01
[EXPENSE-RATIO] 1.46
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 2,958,029,403
[INVESTMENTS-AT-VALUE] 3,025,560,107
[RECEIVABLES] 287,681,729
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,313,241,836
[PAYABLE-FOR-SECURITIES] 306,801,256
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 114,634,978
[TOTAL-LIABILITIES] 421,436,234
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 2,885,971,116
[SHARES-COMMON-STOCK] 10,055,765
[SHARES-COMMON-PRIOR] 3,445,891
[ACCUMULATED-NII-CURRENT] 946,253
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (76,038,767)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 80,927,000
[NET-ASSETS] 2,891,805,602
[DIVIDEND-INCOME] 5,810,138
[INTEREST-INCOME] 223,385,797
[OTHER-INCOME] 0
[EXPENSES-NET] 40,328,855
[NET-INVESTMENT-INCOME] 188,867,080
[REALIZED-GAINS-CURRENT] 53,421,481
[APPREC-INCREASE-CURRENT] 45,383,904
[NET-CHANGE-FROM-OPS] 98,805,385
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 4,770,120
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 6,772,038
[NUMBER-OF-SHARES-REDEEMED] 166,214
[SHARES-REINVESTED] 4,050
[NET-CHANGE-IN-ASSETS] 224,196,157
[ACCUMULATED-NII-PRIOR] 18,374,484
[ACCUMULATED-GAINS-PRIOR] (115,447,984)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 12,546,980
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 40,328,855
[AVERAGE-NET-ASSETS] 53,291,819
[PER-SHARE-NAV-BEGIN] 7.82
[PER-SHARE-NII] 0.60
[PER-SHARE-GAIN-APPREC] 0.28
[PER-SHARE-DIVIDEND] 0.70
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.00
[EXPENSE-RATIO] 0.70
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS Z
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1997
[PERIOD-END] JUL-31-1997
[INVESTMENTS-AT-COST] 2,958,029,403
[INVESTMENTS-AT-VALUE] 3,025,560,107
[RECEIVABLES] 287,681,729
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,313,241,836
[PAYABLE-FOR-SECURITIES] 306,801,256
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 114,634,978
[TOTAL-LIABILITIES] 421,436,234
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 2,885,971,116
[SHARES-COMMON-STOCK] 2,545,737
[SHARES-COMMON-PRIOR] 2,080,516
[ACCUMULATED-NII-CURRENT] 946,253
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (76,038,767)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 80,927,000
[NET-ASSETS] 2,891,805,602
[DIVIDEND-INCOME] 5,810,138
[INTEREST-INCOME] 223,385,797
[OTHER-INCOME] 0
[EXPENSES-NET] 40,328,855
[NET-INVESTMENT-INCOME] 188,867,080
[REALIZED-GAINS-CURRENT] 53,421,481
[APPREC-INCREASE-CURRENT] 45,383,904
[NET-CHANGE-FROM-OPS] 98,805,385
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,572,522
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 440,488
[NUMBER-OF-SHARES-REDEEMED] 173,274
[SHARES-REINVESTED] 198,007
[NET-CHANGE-IN-ASSETS] 224,196,157
[ACCUMULATED-NII-PRIOR] 18,374,484
[ACCUMULATED-GAINS-PRIOR] (115,447,984)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 12,546,980
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 40,328,855
[AVERAGE-NET-ASSETS] 18,096,873
[PER-SHARE-NAV-BEGIN] 7.82
[PER-SHARE-NII] 0.60
[PER-SHARE-GAIN-APPREC] 0.28
[PER-SHARE-DIVIDEND] 0.69
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.01
[EXPENSE-RATIO] 0.69
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
SMITH BARNEY INCOME FUND
10f-3 REPORT
January 1, 1997 through June 30, 1997
% of
Trade Par Value/ Unit
Fund % of
Issuer Date Selling Dealer Share
Price Assets Issue
California Federal 1/24/97 Goldman Sachs 121,000
$25.00 0.11% 2.67%
9.125% Pfd
Tenent Healthcare 1/27/97 Donaldson, Lufkin &
0.36 2.53
8.625% due 1/15/2007 Jenrette $5,600,000
99.894
8.625% due 1/15/2005 4,400,000
99.358
Jacksonville Electric Auth. 2/26/97 Lehman Brothers
5,000,000 99.099 0.58 2.25
5.375% due 10/1/2016
NYS Thruway Trans. 2/28/97 Goldman Sachs
1,000,000 96.158 0.11 0.39
5.25% due 4/1/2016 Legg Mason
NYS Dorm Authority 3/10/97 Bear Stearns
4,550,000 94.156 0.54 3.64
5.50% due 8/15/2017
Puerto Rico Municipal 4/11/97 Morgan Stanley
4,000,000 96.68 0.49 2.18
Finance Agency Prudential Securities
5.50% due 7/1/2017 Lehman Brothers
Citibank
Nebraska Investment 4/21/97 Lehman Brothers
1,500,000 100.00 0.18 3.00
Finance Authority
6.30% due 9/1/2028
NYC Municipal Water, 5/1/97 J.P. Morgan
9,040,000 93.04 1.07 3.01
5.75% due 6/15/2029 A.G. Edwards
Prudential Securities
Lehman Brothers
Morgan Stanley
Bear, Stearns
Artemis Capital
Connecticut Housing 6/20/97 Merrill Lynch
3,000,000 100.00 0.37 4.00
Finance Authority, Artemis Capital
5.85% due 11/15/2028 Fleet/Norstar Securities
First Union
Roosevelt & Cross
Detroit, Ml Sewer 6/20/97 Paine Wabber
4,000,000 92.28 0.45 1.52
Disposal Revenue,
5.00% due 7/1/2027
MCN Energy 6/24/97 Merrill Lynch 106,000
29.125 0.25 1.25
Group Inc.
