Prediction of nonlinear shear hinge parameters in RC members is difficult because it involves a number of parameters like shear capacity, shear displacement, shear stiffness. As shear failure are brittle in nature, designer must ensure that shear failure can never occur. Designer has to design the sections such that flexural failure precedes the shear failure. Also design code does not permit shear failure. However, past earthquakes reveal that majority of the reinforced concrete (RC) structures failed due to shear. Indian construction practice does not guaranty safety against shear. Therefore accurate modeling of shear failure is almost certain for seismic evaluation of RC framed building. Therefore, the primary objective of the present work is to develop nonlinear force deformation model for reinforced concrete section for shear and demonstrate the importance of modeling shear hinge in seismic evaluation of RC framed building. It is found that equations given in Indian Standard IS-456: 2000 and American Standard ACI-318: 2008 represent good estimate of ultimate strength. Two building models, one with shear hinge and other without shear hinges, are analyzed using nonlinear static analysis. The results obtained here show that the presence of shear hinge can correctly reveal the non-ductile failure mode of the building.