U.S. SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C.  20594
 
                             FORM 24F-2
                   ANNUAL NOTICE OF SECURITIES SOLD
                        PURSUANT TO RULE 24F-2
READ INSTRUCTIONS AT END OF FORM BEFORE PREPARING FORM.
PLEASE PRINT OR TYPE.
 
1.    NAME AND ADDRESS OF ISSUER:
 
      Capital Income Builder, Inc. 
      333 South Hope Street
      Los Angeles, CA 90071
 
2.    NAME OF EACH SERIES OR CLASS OF FUNDS FOR WHICH THIS NOTICE IS FILED:
 
3.    INVESTMENT COMPANY ACT FILE NUMBER: 811-5085 
      SECURITIES ACT FILE NUMBER:         33-12967 
 
4.    LAST DAY OF FISCAL YEAR FOR WHICH THIS NOTICE IS FILED:
 
      October 31, 1996
 
5.    CHECK BOX IF THIS NOTICE IS BEING FILED MORE THAN 180 DAYS AFTER THE
CLOSE OF THE ISSUER'S FISCAL YEAR FOR PURPOSES OF REPORTING SECURITIES SOLD
AFTER THE CLOSE OF THE FISCAL YEAR BUT BEFORE TERMINATION OF THE ISSUER'S 24F-2
DECLARATION:
 
      [   ]
 
6.    DATE OF TERMINATION OF ISSUER'S DECLARATION UNDER RULE 24F-2(A)(1), IF
APPLICABLE (SEE INSTRUCTION A.6):
 
7.    NUMBER AND AMOUNT OF SECURITIES OF THE SAME CLASS OR SERIES WHICH HAD
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OTHER THAN PURSUANT TO RULE
24F-2 IN A PRIOR FISCAL YEAR, BUT WHICH REMAINED UNSOLD AT THE BEGINNING OF THE
FISCAL YEAR:
 
8.    NUMBER AND AMOUNT OF SECURITIES REGISTERED DURING THE FISCAL YEAR OTHER
THAN PURSUANT TO RULE 24F-2:
 
9.    NUMBER AND AGGREGATE SALE PRICE OF SECURITIES SOLD DURING THE FISCAL
YEAR:
 
      N/A 
 
10.   NUMBER AND AGGREGATE SALE PRICE OF SECURITIES SOLD DURING THE FISCAL YEAR
IN RELIANCE UPON REGISTRATION PURSUANT TO RULE 24F-2:
 
     20,891,053 shares     $806,630,000
 
11.   NUMBER AND AGGREGATE SALE PRICE OF SECURITIES ISSUED DURING THE FISCAL
YEAR IN CONNECTION WITH DIVIDEND REINVESTMENT PLANS, IF APPLICABLE (SEE
INSTRUCTION B.7):
 
      6,760,213 shares     $251,534,000 
 
12.   CALCULATION OR REGISTRATION FEE:
 
(i)   Aggregate sale price of securities sold during the
      fiscal year in reliance on rule 24f-2 (from Item 10):    $806,630,000
 
(ii)  Aggregate price of shares issued in connection
      with dividend  reinvestment plans (from Item 11,
      if applicable):                                          +251,534,000
 
(iii) Aggregate price of shares redeemed or repurchased
      during the fiscal year (if applicable):                  -606,384,000
 
(iv)  Aggregate price of shares redeemed or repurchased
      and previously applied as a reduction to filing fees
      pursuant to rule 24e-2 (if applicable):                   +  N/A
 
(v)   Net aggregate price of securities sold and issued
      during the fiscal year in reliance on rule 24f-2
      [line (i), plus line (ii), less line (iii), plus line (iv)]
      (if applicable)                                           $451,780,000
 
(vi)  Multiplier prescribed by Section 6(b) of the Securities
      Act of 1933 or other applicable law or regulation
      (see Instruction C.6):                                     x  1/3300
 
(vii) Fee due [line (i) or line (v) multiplied by line (vi)]:    $136,903.03
 
INSTRUCTION: ISSUERS SHOULD COMPLETE LINES (II), (III), (IV), (IV), AND (V)
ONLY IF THE FORM IS BEING FILED WITHIN 60 DAYS AFTER THE CLOSE OF THE ISSUER'S
FISCAL YEAR.  See Instruction C.3.
 
13.   Check box if fees are being remitted to the Commission's lockbox
depository as described in section 3a of the Commission's Rules of Informal and
Other Procedures (17 CFR 202.3a).
 
      [ X ]
 
Date of mailing or wire transfer of filing fees to the Commission's lockbox
depository:
 
December 12, 1996
 
                                   SIGNATURES
 
This report has been signed below by the following persons on behalf of the
issuer and in the capacities and on the dates indicated.
 
                         By (Signature and Title)*
                             /s/ Vincent P. Corti
                                 Vincent P. Corti 
                                 Secretary
 
Date December 18, 1996 
 
* Please print the name and title of the signing officer below the signature.