We need to enable mod_rewrite
sudo a2enmod rewrite
Then we need to restart Apache using following command
sudo service apache2 restart
Then add following lines to /etc/apache2/sites-available/000-default.conf
<Directory "/var/www">
Options FollowSymLinks
AllowOverride All
</Directory>
My apache directory is "/var/www" if yours is different change it to taste
Restart Apache again
sudo service apache2 restart