[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-31-1996
[PERIOD-END]                               JUL-31-1996
[INVESTMENTS-AT-COST]                      159,940,029
[INVESTMENTS-AT-VALUE]                     159,940,029
[RECEIVABLES]                                  441,974
[ASSETS-OTHER]                                     579
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                             160,382,582
[PAYABLE-FOR-SECURITIES]                             0
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                      517,245
[TOTAL-LIABILITIES]                            517,245
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                   150,920,793
[SHARES-COMMON-STOCK]                        9,444,055
[SHARES-COMMON-PRIOR]                        2,850,294
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                               0
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                             0
[NET-ASSETS]                               159,865,337
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                            8,390,077
[OTHER-INCOME]                                       0
[EXPENSES-NET]                               1,743,466
[NET-INVESTMENT-INCOME]                      6,646,611
[REALIZED-GAINS-CURRENT]                        15,797
[APPREC-INCREASE-CURRENT]                            0
[NET-CHANGE-FROM-OPS]                        6,662,408
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                      180,420
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                     76,141,732
[NUMBER-OF-SHARES-REDEEMED]                 69,702,737
[SHARES-REINVESTED]                            154,768
[NET-CHANGE-IN-ASSETS]                     (3,432,750)
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                          748,208
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                              1,743,466
[AVERAGE-NET-ASSETS]                         4,112,007
[PER-SHARE-NAV-BEGIN]                             1.00
[PER-SHARE-NII]                                  0.044
[PER-SHARE-GAIN-APPREC]                              0
[PER-SHARE-DIVIDEND]                                 0
[PER-SHARE-DISTRIBUTIONS]                        0.044
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               1.00
[EXPENSE-RATIO]                                   1.17
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>