<PAGE> PAGE 1
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<PAGE> PAGE 2
013 B030001 02109
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015 C030001 02109
015 E010001 X
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020 C000001 70
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020 C000002 56
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020 C000003 50
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<PAGE> PAGE 3
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022 C000007 547368
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<PAGE> PAGE 4
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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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SIGNATURE PAUL BUCUVALAS
TITLE MANAGING DIRECTOR
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Putnam Income Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS A
<S> <C>
<PERIOD-TYPE> ANNUAL
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 3,556,969,614
<INVESTMENTS-AT-VALUE> 3,523,401,889
<RECEIVABLES> 145,293,783
<ASSETS-OTHER> 1,976,759
<OTHER-ITEMS-ASSETS> 0
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<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 314,361,469
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,411,911,414
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<SHARES-COMMON-PRIOR> 181,479,851
<ACCUMULATED-NII-CURRENT> 2,851,787
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 24,140,056
<ACCUM-APPREC-OR-DEPREC> (34,312,183)
<NET-ASSETS> 3,356,310,962
<DIVIDEND-INCOME> 363,899
<INTEREST-INCOME> 246,672,809
<OTHER-INCOME> 0
<EXPENSES-NET> 37,256,119
<NET-INVESTMENT-INCOME> 209,780,589
<REALIZED-GAINS-CURRENT> (48,229,291)
<APPREC-INCREASE-CURRENT> (81,157,171)
<NET-CHANGE-FROM-OPS> 80,394,127
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (79,385,042)
<DISTRIBUTIONS-OF-GAINS> (6,772,757)
<DISTRIBUTIONS-OTHER> (5,156,795)
<NUMBER-OF-SHARES-SOLD> 117,513,808
<NUMBER-OF-SHARES-REDEEMED> (101,554,672)
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<AVERAGE-NET-ASSETS> 1,391,128,584
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<PER-SHARE-DISTRIBUTIONS> (.04)
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<PER-SHARE-NAV-END> 6.87
<EXPENSE-RATIO> 1.02
<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 Income Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS B
<S> <C>
<PERIOD-TYPE> ANNUAL
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 3,556,969,614
<INVESTMENTS-AT-VALUE> 3,523,401,889
<RECEIVABLES> 145,293,783
<ASSETS-OTHER> 1,976,759
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,670,672,431
<PAYABLE-FOR-SECURITIES> 256,405,029
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<OTHER-ITEMS-LIABILITIES> 57,956,440
<TOTAL-LIABILITIES> 314,361,469
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<PAID-IN-CAPITAL-COMMON> 3,411,911,414
<SHARES-COMMON-STOCK> 72,389,042
<SHARES-COMMON-PRIOR> 56,787,726
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<ACCUMULATED-NET-GAINS> 0
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<ACCUM-APPREC-OR-DEPREC> (34,312,183)
<NET-ASSETS> 3,356,310,962
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (22,749,198)
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<PER-SHARE-NII> .42
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<PER-SHARE-NAV-END> 6.83
<EXPENSE-RATIO> 1.77
<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 Income Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS M
<S> <C>
<PERIOD-TYPE> ANNUAL
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 3,556,969,614
<INVESTMENTS-AT-VALUE> 3,523,401,889
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<OTHER-ITEMS-LIABILITIES> 57,956,440
<TOTAL-LIABILITIES> 314,361,469
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<SHARES-COMMON-PRIOR> 51,801,067
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<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 24,140,056
<ACCUM-APPREC-OR-DEPREC> (34,312,183)
<NET-ASSETS> 3,356,310,962
<DIVIDEND-INCOME> 363,899
<INTEREST-INCOME> 246,672,809
<OTHER-INCOME> 0
<EXPENSES-NET> 37,256,119
<NET-INVESTMENT-INCOME> 209,780,589
<REALIZED-GAINS-CURRENT> (48,229,291)
<APPREC-INCREASE-CURRENT> (81,157,171)
<NET-CHANGE-FROM-OPS> 80,394,127
<EQUALIZATION> 0
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<DISTRIBUTIONS-OF-GAINS> (3,964,090)
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<NUMBER-OF-SHARES-SOLD> 233,079,491
<NUMBER-OF-SHARES-REDEEMED> (111,298,763)
<SHARES-REINVESTED> 297,510
<NET-CHANGE-IN-ASSETS> 1,116,807,463
<ACCUMULATED-NII-PRIOR> 35,030
<ACCUMULATED-GAINS-PRIOR> 10,295,621
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 16,143,721
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 38,465,425
<AVERAGE-NET-ASSETS> 1,145,729,041
<PER-SHARE-NAV-BEGIN> 7.11
<PER-SHARE-NII> .47
<PER-SHARE-GAIN-APPREC> (.28)
<PER-SHARE-DIVIDEND> (.39)
<PER-SHARE-DISTRIBUTIONS> (.04)
<RETURNS-OF-CAPITAL> (.03)
<PER-SHARE-NAV-END> 6.84
<EXPENSE-RATIO> 1.27
<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 Income Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS Y
<S> <C>
<PERIOD-TYPE> ANNUAL
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 3,556,969,614
<INVESTMENTS-AT-VALUE> 3,523,401,889
<RECEIVABLES> 145,293,783
<ASSETS-OTHER> 1,976,759
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,670,672,431
<PAYABLE-FOR-SECURITIES> 256,405,029
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 57,956,440
<TOTAL-LIABILITIES> 314,361,469
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,411,911,414
<SHARES-COMMON-STOCK> 35,809,954
<SHARES-COMMON-PRIOR> 23,891,056
<ACCUMULATED-NII-CURRENT> 2,851,787
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 24,140,056
<ACCUM-APPREC-OR-DEPREC> (34,312,183)
<NET-ASSETS> 3,356,310,962
<DIVIDEND-INCOME> 363,899
<INTEREST-INCOME> 246,672,809
<OTHER-INCOME> 0
<EXPENSES-NET> 37,256,119
<NET-INVESTMENT-INCOME> 209,780,589
<REALIZED-GAINS-CURRENT> (48,229,291)
<APPREC-INCREASE-CURRENT> (81,157,171)
<NET-CHANGE-FROM-OPS> 80,394,127
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (13,178,073)
<DISTRIBUTIONS-OF-GAINS> (896,482)
<DISTRIBUTIONS-OTHER> (856,038)
<NUMBER-OF-SHARES-SOLD> 26,281,110
<NUMBER-OF-SHARES-REDEEMED> (16,472,127)
<SHARES-REINVESTED> 2,109,915
<NET-CHANGE-IN-ASSETS> 1,116,807,463
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<INTEREST-EXPENSE> 0
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<PER-SHARE-NAV-BEGIN> 7.15
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<PER-SHARE-NAV-END> 6.88
<EXPENSE-RATIO> .77
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
