Due to mechanical errors, sometimes when the anvil and spindle end are brought in contact, the zero mark of the circular scale does not coincide with the base line of main scale. It is either above or below the base line of the main scale, in which case the screw gauge is said to have a zero error. It can be both positive and negative.
It is accounted by subtracting the zero error (with sign) from the observed reading in order to get the correct reading.
Correct reading = Observed reading – zero error (with sign)