<PAGE> PAGE 1
000 B000000 08/31/96
000 C000000 0000770161
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 THE AMERICAN FUNDS INCOME SERIES
001 B000000 811-4318
001 C000000 2134869200
002 A000000 333 SOUTH HOPE STREET
002 B000000 LOS ANGELES
002 C000000 CA
002 D010000 90071
002 D020000 1443
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 1
007 C010100 1
007 C020100 U.S. GOVERNMENT SECURITIES FUND
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<PAGE> PAGE 2
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021 000000 0
022 A000001 GENERAL ELECTRIC CAPITAL CORP.
022 B000001 13-1500700
022 C000001 1895212
022 D000001 0
022 A000002 ASSOCIATES CORP. OF NORTH AMERICA
022 B000002 74-1494554
022 C000002 1893791
022 D000002 0
022 A000003 LEHMAN BROTHERS INC.
022 B000003 13-2501865
022 C000003 1153027
022 D000003 86384
022 A000004 CS FIRST BOSTON CORP.
022 B000004 13-5659485
022 C000004 779843
022 D000004 31289
<PAGE> PAGE 3
022 A000005 MORGAN (J.P.) SECURITIES INC.
022 B000005 13-3224016
022 C000005 546979
022 D000005 0
022 A000006 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000006 13-5674085
022 C000006 357410
022 D000006 61565
022 A000007 GOLDMAN SACHS & CO.
022 B000007 13-5108880
022 C000007 175494
022 D000007 38964
022 A000008 SOLOMON BROTHERS INC.
022 B000008 13-3082694
022 C000008 126944
022 D000008 83365
022 A000009 FORD MOTOR CREDIT CO.
022 B000009 38-1612444
022 C000009 184204
022 D000009 0
022 A000010 MORGAN STANLEY & CO. INC.
022 B000010 13-2655998
022 C000010 138212
022 D000010 19698
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023 D000000 545794
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<PAGE> PAGE 4
008 A000101 CAPITAL RESEARCH AND MANAGEMENT COMPANY
008 B000101 A
008 C000101 801-8055
008 D010101 LOS ANGELES
008 D020101 CA
008 D030101 90071
008 D040101 1443
011 A000101 AMERICAN FUNDS DISTRIBUTORS, INC.
011 B000101 8-17168
011 C010101 LOS ANGELES
011 C020101 CA
011 C030101 90071
011 C040101 1443
012 A000101 AMERICAN FUNDS SERVICE COMPANY
012 B000101 84-00316
012 C010101 BREA
012 C020101 CA
012 C030101 92821
013 A000101 DELOITTE & TOUCHE LLP
013 B010101 LOS ANGELES
013 B020101 CA
013 B030101 90017
015 A000101 THE CHASE MANHATTAN BANK, N.A.
015 B000101 C
015 C010101 NEW YORK
015 C020101 CA
015 C030101 10081
015 E010101 X
018 000100 Y
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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080 A000100 NATIONAL UNION FIRE INSURANCE COMPANY
080 B000100 CHUBB CUSTOM INSURANCE COMPANY
080 C000100 65000
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SIGNATURE JULIE F. WILLIAMS
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-1-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 1,232,014
<INVESTMENTS-AT-VALUE> 1,205,087
<RECEIVABLES> 16,829
<ASSETS-OTHER> 21
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,221,937
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,532
<TOTAL-LIABILITIES> 5,532
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,340,001
<SHARES-COMMON-STOCK> 95,183,240
<SHARES-COMMON-PRIOR> 101,015,638
<ACCUMULATED-NII-CURRENT> 4,835
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (101,504)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (26,927)
<NET-ASSETS> 1,216,405
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 102,199
<OTHER-INCOME> 0
<EXPENSES-NET> 10,514
<NET-INVESTMENT-INCOME> 91,685
<REALIZED-GAINS-CURRENT> (21,590)
<APPREC-INCREASE-CURRENT> (25,171)
<NET-CHANGE-FROM-OPS> 44,924
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (89,352)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,684,657
<NUMBER-OF-SHARES-REDEEMED> 27,346,462
<SHARES-REINVESTED> 4,829,407
<NET-CHANGE-IN-ASSETS> (121,051)
<ACCUMULATED-NII-PRIOR> 2,502
<ACCUMULATED-GAINS-PRIOR> 79,914
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<AVERAGE-NET-ASSETS> 1,301,689
<PER-SHARE-NAV-BEGIN> 13.24
<PER-SHARE-NII> .93
<PER-SHARE-GAIN-APPREC> (.49)
<PER-SHARE-DIVIDEND> .90
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</TABLE>
INDEPENDENT AUDITORS' REPORT
The American Funds Income Series - U.S. Government Securities Fund:
In planning and performing our audit of the financial statements of
The American Funds Income Series - U.S. Government Securities Fund
(the "Fund") for the year ended August 31, 1996, we considered its
internal control structure, including procedures 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, not to provide assurance
on the internal control structure.
The management of the Fund is responsible for establishing and
maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required
to assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an
internal control structure are to provide management with reasonable,
but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition and that transactions are
executed in accordance with management's authorization and recorded
properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure 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 internal control structure would not
necessarily disclose all matters in the internal control structure
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 the
specific internal control structure elements does not reduce to a
relatively low level the risk that errors and irregularities 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
internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined
above as of August 31, 1996.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
Deloitte & Touche LLP
Los Angeles, California
September 27, 1996
