Is honesty always the best policy?

Is honesty always the best policy or another way of putting it, is lying every acceptable?

honesty is the best policy
—used to say that telling the truth is better than lying even when it is hard to do

I’m always being told by hubs that I am too honest, that I should filter my comments to spare people’s feelings.  Is this right to do though?  Even if something is hard to hear, hard to share, is it not better to put it out there.  Does this not create trust between parties that in turn grows relationships.  Does withholding information cause distrust?

I understand that there are somethings that are too personal to divulge, that friendships vary, as does the level of information one would share.  Sometimes it takes time to build up trust, and that we omit certain snippets of information to protect others, not party to the conversation.

I suppose omitting information is probably the best way forward, rather than lying, we just omit certain elements of the truth, but what happens when the truths come out?  Should one be trusted again, or is it better to question each further comment or potential omission, as a possible untruth.

George Orwell
During times of universal deceit, telling the truth becomes a revolutionary act.