[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 4
   [NAME] TAX-EXEMPT INCOME CLASS C
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   YEAR
[FISCAL-YEAR-END]                          JUL-31-1996
[PERIOD-END]                               JUL-31-1996
[INVESTMENTS-AT-COST]                      856,573,272
[INVESTMENTS-AT-VALUE]                     882,389,630
[RECEIVABLES]                               18,001,577
[ASSETS-OTHER]                                  90,170
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                             900,481,377
[PAYABLE-FOR-SECURITIES]                    13,822,024
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                    1,336,493
[TOTAL-LIABILITIES]                         15,158,517
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                   862,365,963
[SHARES-COMMON-STOCK]                           31,538
[SHARES-COMMON-PRIOR]                           12,232
[ACCUMULATED-NII-CURRENT]                   50,346,526
[OVERDISTRIBUTION-NII]                          71,821
[ACCUMULATED-NET-GAINS]                    (2,982,398)
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                    25,816,358
[NET-ASSETS]                               885,322,860
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                           61,696,811
[OTHER-INCOME]                                       0
[EXPENSES-NET]                              11,350,285
[NET-INVESTMENT-INCOME]                     50,346,526
[REALIZED-GAINS-CURRENT]                     4,816,209
[APPREC-INCREASE-CURRENT]                    (642,445)
[NET-CHANGE-FROM-OPS]                       54,520,290
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                       23,163
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                        372,612
[NUMBER-OF-SHARES-REDEEMED]                     50,954
[SHARES-REINVESTED]                             17,515
[NET-CHANGE-IN-ASSETS]                    (89,168,516)
[ACCUMULATED-NII-PRIOR]                     57,517,554
[ACCUMULATED-GAINS-PRIOR]                  (7,798,607)
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                        3,771,279
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                             11,350,285
[AVERAGE-NET-ASSETS]                           436,146
[PER-SHARE-NAV-BEGIN]                            17.25
[PER-SHARE-NII]                                  00.89
[PER-SHARE-GAIN-APPREC]                          00.07
[PER-SHARE-DIVIDEND]                             00.90
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                              17.31
[EXPENSE-RATIO]                                  01.39
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>