Lying In Hindu Dharma

1. Circumstances when it is allowed to lie

Mahabharata 8.69
Truth may be unutterable, and even falsehood may be utterable where falsehood would become truth and truth would become falsehood. In a situation of peril to life and in marriage, falsehood becomes utterable. In a situation involving the loss of one’s entire property, falsehood becomes utterable. On an occasion of marriage, or of enjoying a woman, or when life is in danger, or when one’s entire property is about to be taken away, or for the sake of a Brahmana, falsehood may be uttered. These five kinds of falsehood have been declared to be sinless.”  (source)

Brahma Viavarta Purana Krishna Janma Khanda 98.38-44
Madhava smiled and he started speaking words according to the Vedas which were quite truthful. Sri Krsna said- It is not a sin to resort to falsehood while cutting jokes with the damsels, in the marriages, for the sake of livelihood, when life is in danger and for the sake of the cows and the Brahmanas. Therefore even if you don’t make your words truthful, there is no harm in the same nor would you have to face the hell. My devotee actually goes to the Goloka and not to the hell.”  (source)

Matsya Purana 31.16
Sarmistha said:- “King! there is no sin in speaking untruth at the time of indulging in sexual pleasures, on the occasion of marriage, when life is in danger, wealth is at stake, and in joke. Lying on these five occasions is venal.””  (source)

Mahabharata 1.82
Sarmishtha then said, ‘It hath been said, O king, that it is not sinful to lie on the occasion of a joke, in respect of women sought to be enjoyed, on occasions of marriage, in peril of immediate death and of the loss of one’s whole fortune. Lying is excusable on these five occasions.”  (source)

Shrimad Bhagavatam 8.19.42-43
Therefore, the safe course is to say no. Although it is a falsehood, it protects one completely, it draws the compassion of others toward oneself, and it gives one full facility to collect money from others for oneself. Nonetheless, if one always pleads that he has nothing, he is condemned, for he is a dead body while living, or while still breathing he should be killed. In flattering a woman to bring her under control, in joking, in a marriage ceremony, in earning one’s livelihood, when one’s life is in danger, in protecting cows and brahminical culture, or in protecting a person from an enemy’s hand, falsity is never condemned.”  (source)

Vasishtha Dharmsutra 16.35
(Men) may speak an untruth at the time of marriage, during dalliance, when their lives are in danger or the loss of their whole property is imminent, and for the sake of a Brāhmaṇa; they declare that an untruth spoken in these five cases does not make (the speaker) an outcast.”  (source)

Gautama Dharmsutra 23.29
Some (declare, that) an untruth (spoken) at the time of marriage, during dalliance, in jest or while (one suffers severe) pain is venial.”  (source)