Personal Taxation Q 'n A

I have sold some mutual funds for much more than I paid which I have held for many years. Is it possible that I may pay income tax on less than my actual gain?
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For most individuals who own mutual funds, income earned within those funds is reinvested each year with the purchase of more units of that fund. This income has to be reported annually. This income however serves to increase the cost base of your mutual funds. When you sell your units, it is important to know not only what you initially paid for the funds, but also have a history of income reinvested and earlier redemption’s.