<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000764624
<NAME> SMITH BARNEY INCOME FUNDS
<SERIES>
   <NUMBER> 10
   <NAME> DIVERSIFIED STRATEGIC INCOME FUND CLASS Y
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUL-31-1996
<PERIOD-END>                               JUL-31-1996
<INVESTMENTS-AT-COST>                    2,723,959,882
<INVESTMENTS-AT-VALUE>                   2,780,459,906
<RECEIVABLES>                               65,498,464
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                         2,003,245
<TOTAL-ASSETS>                           2,847,961,615
<PAYABLE-FOR-SECURITIES>                   171,523,724
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                    8,828,446
<TOTAL-LIABILITIES>                        180,352,170
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                 2,745,951,455
<SHARES-COMMON-STOCK>                        3,445,891
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                      26,273,688
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                   104,940,161
<ACCUM-APPREC-OR-DEPREC>                    52,871,839
<NET-ASSETS>                             2,667,609,445
<DIVIDEND-INCOME>                            4,912,706
<INTEREST-INCOME>                          210,999,542
<OTHER-INCOME>                                       0
<EXPENSES-NET>                              58,750,708
<NET-INVESTMENT-INCOME>                    177,161,540
<REALIZED-GAINS-CURRENT>                    14,882,931
<APPREC-INCREASE-CURRENT>                    5,832,962
<NET-CHANGE-FROM-OPS>                      197,877,433
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      707,539
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                      3,547,674
<NUMBER-OF-SHARES-REDEEMED>                    121,413
<SHARES-REINVESTED>                             19,630
<NET-CHANGE-IN-ASSETS>                     107,713,118
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                     11,805,103
<OVERDIST-NET-GAINS-PRIOR>                 102,365,054
<GROSS-ADVISORY-FEES>                       11,818,108
<INTEREST-EXPENSE>                             783,833
<GROSS-EXPENSE>                             38,750,708
<AVERAGE-NET-ASSETS>                         8,915,207
<PER-SHARE-NAV-BEGIN>                             7.89
<PER-SHARE-NII>                                   0.50
<PER-SHARE-GAIN-APPREC>                          (.02)
<PER-SHARE-DIVIDEND>                              0.55
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               7.82
<EXPENSE-RATIO>                                   0.75
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>