[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 10
   [NAME] DIVERSIFIED STRATEGIC INCOME FUND CLASS Y
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   6-MOS
[FISCAL-YEAR-END]                          JUL-31-1997
[PERIOD-END]                               JAN-31-1997
[INVESTMENTS-AT-COST]                    2,654,457,996
[INVESTMENTS-AT-VALUE]                   2,743,791,864
[RECEIVABLES]                               71,557,427
[ASSETS-OTHER]                               2,779,246
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                           2,818,128,537
[PAYABLE-FOR-SECURITIES]                     9,974,813
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                   22,469,321
[TOTAL-LIABILITIES]                         32,444,134
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                 2,792,500,911
[SHARES-COMMON-STOCK]                        6,636,654
[SHARES-COMMON-PRIOR]                        3,445,891
[ACCUMULATED-NII-CURRENT]                    5,032,624
[OVERDISTRIBUTION-NII]                               0
[ACCUMULATED-NET-GAINS]                  (100,960,629)
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                    89,111,497
[NET-ASSETS]                             2,785,684,403
[DIVIDEND-INCOME]                            2,599,612
[INTEREST-INCOME]                          109,735,168
[OTHER-INCOME]                                       0
[EXPENSES-NET]                              20,240,864
[NET-INVESTMENT-INCOME]                     92,093,916
[REALIZED-GAINS-CURRENT]                    34,861,464
[APPREC-INCREASE-CURRENT]                   36,239,658
[NET-CHANGE-FROM-OPS]                      163,195,038
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                    1,850,583
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                      3,354,610
[NUMBER-OF-SHARES-REDEEMED]                    166,209
[SHARES-REINVESTED]                              2,362
[NET-CHANGE-IN-ASSETS]                     118,074,958
[ACCUMULATED-NII-PRIOR]                     26,273,688
[ACCUMULATED-GAINS-PRIOR]                (104,940,161)
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                        6,248,696
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                             20,240,864
[AVERAGE-NET-ASSETS]                         8,915,207
[PER-SHARE-NAV-BEGIN]                             7.82
[PER-SHARE-NII]                                   0.50
[PER-SHARE-GAIN-APPREC]                              0
[PER-SHARE-DIVIDEND]                              0.35
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               7.97
[EXPENSE-RATIO]                                   0.70
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>