How to fix localhost htaccess issues in LAMP environment:

1) Enable short open tags in php ini file.

=> sudo nano -w /etc/php5/apache2/php.ini

2) Enable mod_rewrite in php ini file

=> sudo nano /etc/apache2/apache2.conf
3) First Step
Open file as
sudo vim /etc/apache2/apache2.conf

Second Step
remove comment sign (#) if you find it before this line ( line number 187 approx.)
AccessFileName .htaccess

Third Step
Then find the line where there is
Options Indexes FollowSymLinks AllowOverrideNone Require all granted
replace "None" with "All"
AllowOverride All

4) => sudo service apache2 restart