[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 10
   [NAME] DIVERSIFIED STRATEGIC INCOME FUND CLASS Z
<TABLE>
<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]                        2,080,516
[SHARES-COMMON-PRIOR]                        1,829,176
[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]                    1,321,532
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                        391,370
[NUMBER-OF-SHARES-REDEEMED]                    308,090
[SHARES-REINVESTED]                            168,060
[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]                        15,047,290
[PER-SHARE-NAV-BEGIN]                             7.85
[PER-SHARE-NII]                                   0.70
[PER-SHARE-GAIN-APPREC]                          (.04)
[PER-SHARE-DIVIDEND]                              0.69
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               7.82
[EXPENSE-RATIO]                                   0.76
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>