Is it true that contraception is forbidden in Islam, and that there is a punishment for women because of it?

The Sharia (definition) encourages abundant offspring, and taking birth control pills is permissible for birth control when needed, but it is inconceivable to make them obligatory. As for what is narrated about the Prophet seeing women being tortured for taking birth control pills, there is no basis for it. Perhaps it was confused with what is stated in Al-Tabarani's hadith (definition) about the Prophet seeing women hanging with snakes gnawing at their breasts, and he was told: "These are the ones who prevent their children from their milk."