This excerpt is taken from Sheikh Abu Hamza Abdul Khaliq Siddiqi's book Sahih Fazail-e-Amaal.
Allah Almighty says:
﴿فَمَنْ أَظْلَمُ مِمَّن كَذَبَ عَلَى اللَّهِ وَكَذَّبَ بِالصِّدْقِ إِذْ جَاءَهُ ۚ أَلَيْسَ فِي جَهَنَّمَ مَثْوًى لِّلْكَافِرِينَ . وَالَّذِي جَاءَ بِالصِّدْقِ وَصَدَّقَ بِهِ ۙ أُولَٰئِكَ هُمُ الْمُتَّقُونَ . لَهُم مَّا يَشَاءُونَ عِندَ رَبِّهِمْ ۚ ذَٰلِكَ جَزَاءُ الْمُحْسِنِينَ.﴾
"Then who is more unjust than one who invents a lie against Allah, and when the truth has come to him, he denies it? Is there not in Hell a residence for the disbelievers? And the Messenger has brought the truth, and those who believe in Allah and confirm it - those are the fearing of Allah. For them is whatever they desire with their Lord. That is the reward of the doers of good."
Reference: (39-Al-Zumar:32 to 35)
The best example for those who speak the truth is found in the Muhajirun companions of the Holy Prophet Muhammad (peace be upon him). Allah Almighty has said:
﴿لِلْفُقَرَاءِ الْمُهَاجِرِينَ الَّذِينَ أُخْرِجُوا مِن دِيَارِهِمْ وَأَمْوَالِهِمْ يَبْتَغُونَ فَضْلًا مِّنَ اللَّهِ وَرِضْوَانًا وَيَنصُرُونَ اللَّهَ وَرَسُولَهُ ۚ أُولَٰئِكَ هُمُ الصَّادِقُونَ﴾
"The wealth is for the poor Muhajirun who were expelled from their homes and properties, seeking the bounty and pleasure of Allah, and supporting Allah and His Messenger. Those are the truthful."
Reference: (59-Al-Hashr:8)
If there is truth, hearts are drawn from the chest, O preacher
Reality makes itself accepted, it cannot be denied
﴿طَاعَةٌ وَقَوْلٌ مَّعْرُوفٌ ۚ فَإِذَا عَزَمَ الْأَمْرُ فَلَوْ صَدَقُوا اللَّهَ لَكَانَ خَيْرًا لَّهُمْ﴾
"So it was better for them to obey the command and say a good word. Then when the matter is decided, if they are truthful to Allah, it is better for them."
Reference: (47-Muhammad:21)
In these verses, Allah Almighty has described goodness, paradise, and other rewards and honors for those who speak the truth. That is, there is only good in truth. Although sometimes it may appear as loss on the surface, there is still goodness in it.
عن عبد الله بن مسعود رضى الله عنه عن النبى صلى الله عليه وسلم قال: إن الصدق يهدي إلى البر، وإن البر يهدي إلى الجنة، وإن الرجل ليصدق حتى يكتب عند الله صديقا، وإن الكذب يهدي إلى الفجور، وإن الفجور يهدي إلى النار، وإن الرجل ليكذب حتى يكتب عند الله كذابا .
It is narrated from Sayyiduna Abdullah bin Mas'ud (may Allah be pleased with him) that the Prophet Muhammad (peace be upon him) said: "Indeed, truthfulness leads to righteousness, and righteousness leads to Paradise. A person continues to speak the truth until he is recorded with Allah as a truthful person. And lying leads to sin, and sin leads to Hell. A person continues to lie until he is recorded with Allah as a liar."
Reference: Sahih Bukhari, Book of Manners, Chapter on the Saying of Allah Almighty, ﴿O you who have believed, fear Allah and be with those who are truthful﴾ and what forbids lying, No: 6094 - Sahih Muslim, Book of Virtue, Chapter on the Disgrace of Lying and the Excellence of Truthfulness, No: 2607.
It is narrated from Sayyiduna Hasan bin Ali (may Allah be pleased with them both) that the Prophet Muhammad (peace be upon him) said:
الصدق طمأنينة، وإن الكذب ريبة .
"Truthfulness is a cause of reassurance, and lying is a cause of doubts and suspicions."
Reference: Sunan Tirmidhi, Book of the Description of the Resurrection, No: 2518 - Al-Albani (may Allah have mercy on him) declared it "Sahih". Arwa' al-Ghalil, No: 12, 2074.
It is narrated from Sayyiduna Abu Imamah (may Allah be pleased with him) that the Messenger of Allah (peace be upon him) said: "I guarantee that whoever, despite being right, leaves a dispute, will have a house in the outskirts of Paradise. And whoever leaves lying even in jest will have a house in the middle of Paradise. And whoever has excellent character will have a house in the highest part of Paradise."
Reference: Sunan Abu Dawood, Book of Manners, Chapter on Good Character, No: 4800 - Al-Silsilah al-Sahihah, No: 273.
It is narrated from Sayyiduna Ubada bin As-Samit (may Allah be pleased with him) that the Messenger of Allah (peace be upon him) said: "Accept my six things and I guarantee you Paradise." The companions (may Allah be pleased with them) asked: What are those things? He (peace be upon him) said:
1. When you speak, do not lie.
2. When you make a promise, do not break it.
3. When you are entrusted, do not betray.
4. Protect your private parts.
5. Lower your gaze.
6. Keep your hands away (from evil deeds)."
Reference: Al-Silsilah al-Sahihah, No: 1470.