Federated Investors, Inc.

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form N-Q

Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies

811-3352

(Investment Company Act File Number)

Federated Income Trust

___________________________________________

(Exact Name of Registrant as Specified in Charter)

Federated Investors Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant's Telephone Number)

John W. McGonigle, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 01/31/15

Date of Reporting Period: Quarter ended 04/30/14

Item 1. Schedule of Investments

Federated Income Trust

Portfolio of Investments

April 30, 2014 (unaudited)

Principal Amount			Value
		MORTGAGE-BACKED SECURITIES—98.2%¹
		Federal Home Loan Mortgage Corporation—23.9%
$22,420,113	²	3.000%, 3/1/2028 - 5/1/2044	$22,402,813
8,481,913		3.500%, 11/1/2025 - 6/1/2032	8,847,219
2,875,376		4.000%, 8/1/2025	3,072,834
18,297,117		4.500%, 6/1/2019 - 9/1/2040	19,607,934
13,824,552		5.000%, 8/1/2023 - 12/1/2039	15,171,276
9,878,420		5.500%, 12/1/2021 - 1/1/2039	10,919,080
3,907,677		6.000%, 4/1/2036 - 9/1/2038	4,349,428
98,534		6.500%, 9/1/2029	110,554
725,670		7.000%, 2/1/2031 - 3/1/2032	842,296
688,291		7.500%, 2/1/2027 - 2/1/2031	807,049
3,887		9.500%, 9/1/2016	4,167
		TOTAL	86,134,650
		Federal National Mortgage Association—64.7%
6,344,683		2.500%, 8/1/2027 - 4/1/2028	6,396,024
38,387,628	²	3.000%, 6/1/2027 - 5/1/2044	38,741,243
43,334,290		3.500%, 1/1/2026 - 5/1/2043	44,160,215
62,667,101		4.000%, 12/1/2031 - 12/1/2042	65,941,282
30,642,463	²	4.500%, 9/1/2041 - 5/1/2044	32,943,009
22,542,025	²	5.000%, 10/1/2023 - 6/1/2044	24,714,359
7,434,940		5.500%, 9/1/2034 - 9/1/2037	8,262,458
6,452,594		6.000%, 6/1/2016 - 10/1/2038	7,201,910
3,487,359		6.500%, 12/1/2027 - 9/1/2037	3,903,912
405,271		7.000%, 7/1/2029 - 2/1/2032	468,575
150,967		7.500%, 7/1/2028 - 8/1/2031	177,002
185,279		8.000%, 12/1/2026	220,355
37,117		10.000%, 1/1/2016 - 11/1/2021	43,744
14,407		10.500%, 12/1/2019 - 4/1/2022	16,450
		TOTAL	233,190,538
		Government Agency—1.6%
2,723,550	^3,4	FDIC Trust 2013-R1, Class A, 1.150%, 3/25/2033	2,639,623
3,320,682	^3,4	FDIC Trust 2013-R2, Class A, 1.250%, 3/25/2033	3,232,235
		TOTAL	5,871,858
		Government National Mortgage Association—8.0%
21,495,456		3.500%, 9/15/2041	22,141,998
3,035,455		5.000%, 5/20/2039 - 7/20/2039	3,349,463
851,406		5.500%, 11/20/2038	941,968
692,496		6.500%, 10/20/2038	786,023
1,276,956		7.000%, 6/15/2026 - 2/15/2031	1,487,666
9,612		7.500%, 1/15/2031	11,444
137,959		8.000%, 11/15/2023 - 7/15/2030	165,980
79,742		8.500%, 6/15/2030	97,549
		TOTAL	28,982,091
		TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $348,700,075)	354,179,137

Principal Amount			Value
		COLLATERALIZED MORTGAGE OBLIGATIONS—6.8%
		Government National Mortgage Association—6.8%
$14,513,970	⁵	REMIC 2013-H16 FA, 0.708%, 7/20/2063	$14,507,090
9,895,351	⁵	REMIC 2013-H19 FB, 0.768%, 8/19/2063	9,918,912
		TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $24,412,671)	24,426,002
		REPURCHASE AGREEMENT—8.1%
29,280,000	⁵	Interest in $1,245,000,000 joint repurchase agreement 0.06%, dated 4/30/2014 under which Bank of America, N.A. will repurchase securities provided as collateral for $1,245,002,075 on 5/1/2014. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government Agency securities with various maturities to 11/1/2043 and the market value of those underlying securities was $1,271,760,401. (AT COST)	29,280,000
		TOTAL INVESTMENTS—113.1% (IDENTIFIED COST $402,392,746)⁶	407,885,139
		OTHER ASSETS AND LIABILITIES - NET—(13.1)%⁷	(47,275,903)
		TOTAL NET ASSETS—100%	$360,609,236

At April 30, 2014, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Unrealized Appreciation/ (Depreciation)
⁸United States Treasury Notes 2-Year Long Futures	210	$46,173,750	June 2014	$6,098
⁸United States Treasury Notes 5-Year Short Futures	150	$17,917,969	June 2014	$19,585
⁸United States Treasury Notes 10-Year Short Futures	305	$37,948,672	June 2014	$(140,374)
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS				$(114,691)

The average notional value of long and short futures contracts held by the Fund throughout the period was $46,174,570 and $52,505,020, respectively. This is based on the contracts held as of each month-end throughout the three-month fiscal period.

Net Unrealized Depreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”

1	Due to monthly principal payments, the average lives of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government National Mortgage Association securities approximates one to ten years.
2	All or a portion of these To Be Announced Securities (TBAs) are subject to dollar-roll transactions.
3	Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At April 30, 2014, these restricted securities amounted to $5,871,858, which represented 1.6% of total net assets.
4	Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At April 30, 2014, these liquid restricted securities amounted to $5,871,858, which represented 1.6% of total net assets.
5	All or a portion of these securities are segregated pending settlement of dollar-roll transactions.
6	At April 30, 2014, the cost of investments for federal tax purposes was $402,392,746. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized depreciation resulting from futures contracts was $5,492,393. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $10,252,114 and net unrealized depreciation from investments for those securities having an excess of cost over value of $4,759,721.
7	Assets, other than investments in securities, less liabilities. A significant portion of this balance is the result of dollar-roll transactions as of April 30, 2014.
8	Non-income-producing security.

Note: The categories of investments are shown as a percentage of total net assets at April 30, 2014.

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

■	Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
■	Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their amortized cost (adjusted for the accretion of any discount or amortization of any premium), unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security.
■	Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.
■	Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
■	Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

■

For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered such as: the purchase price of the security, information obtained by contacting the issuer, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded and public trading in similar securities of the issuer or comparable issuers.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, or if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation Procedures

The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Investment Management Company (“Adviser”) and certain of the Adviser's affiliated companies to determine fair value of securities and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.

Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities and mortgage-backed securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities, including investment companies with daily net asset values, if applicable.

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.

Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of April 30, 2014, in valuing the Fund's assets carried at fair value:

Valuation Inputs
	Level 1— Quoted Prices and Investments in Investment Companies	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Debt Securities:
Mortgage-Backed Securities	$—	$354,179,137	$—	$354,179,137
Collateralized Mortgage Obligations	—	24,426,002	—	24,426,002
Repurchase Agreement	—	29,280,000	—	29,280,000
TOTAL SECURITIES	$—	$407,885,139	$—	$407,885,139
OTHER FINANCIAL INSTRUMENTS*	$(114,691)	$—	$—	$(114,691)

*	Other financial instruments include futures contracts.

The following acronyms are used throughout this portfolio:

FDIC	—Federal Deposit Insurance Corporation
REMIC	—Real Estate Mortgage Investment Conduit

Item 2. Controls and Procedures

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-Q.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant Federated Income Trust

By /S/ Lori A. Hensler

Lori A. Hensler

Principal Financial Officer

Date June 23, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By /S/ J. Christopher Donahue

J. Christopher Donahue

Principal Executive Officer

Date June 23, 2014

By /S/ Lori A. Hensler

Lori A. Hensler

Principal Financial Officer

Date June 23, 2014