TOEFL: Test Of English as a Foreign Language

Conducted by - ETS (HQ at Princeton, NJ, USA)

First administered in - 1964
Skills tested - Reading, Listening, Speaking, Writing.
Scale - 0-120 points. Each of the four test-sections carries 30 points. A TOEFL
score of 85-100 is considered good for admits in most grad schools. A score greater
than 100 is considered excellent.
Test duration - 4 hours
Fees - $165 i.e. Rs. 10000 approx.
Test Centres in India - 29

IELTS: International English Language Testing System

Conducted jointly by - University of Cambridge ESOL Examinations, the British
Council and IDP Education Pty Ltd.
Est. in - 1989
Skills tested - Listening, Reading, Writing, Speaking.
Scale - Nine-band scale (0-9) A score of 5.5-6 is generally considered useless
(candidates should preferably retake the test in such cases). A 6.5 IELTS score
gives you admits in most grad schools (presuming that you have the other
credentials at par), and a 7 is considered excellent. (as far as M.S. with a major
in engg. is concerned)
Test Duration - 2 hours and 45 minutes
Fees- Rs. 8900 or Rs. 9300 (depends on the test-centre opted)
Test Centres in India - 74

Besides these, there are other wiki facts:

"IELTS is accepted by most Australian, British, Canadian, Irish, New Zealand and
South African academic institutions, over 3,000 academic institutions in the United
States, and various professional organisations. It is also a requirement for
immigration to Australia, New Zealand and Canada."

"In 2007, IELTS tested over a million candidates in a single 12-month period for
the first time ever, making it the world's most popular English language test for
higher education and immigration."

No test is easy! For securing excellent admits (preferably with scholarships and
assistantships), you need to score as much as you can.
M.S. from U.S. without financial aid sounds unwise and impracticable unless you are
filthy rich.
This means you'll have to work hard for either of the tests, be it TOEFL or IELTS.

How to Choose?
Think about which country/region are you targeting.

Most Indian students plan to go to the U.S. for higher studies.

A significant no. of grad schools of the U.S. have started to accept IELTS scores.
But if you have a fairly good profile (acads 75% throughout), a 300+ GRE score and
a strong intention to study in the U.S., then you should choose the TOEFL.
For profiles and scores less than that, both IELTS and TOEFL are almost equally
preferred. But still, if you do not find many differences, you should opt for the
TOEFL.

Likewise, to study in the U.K., Australia, Canada, New Zealand and South Africa,
IELTS is strongly recommended.The IELTS is often percieved by many people to be
easier than TOEFL in more ways than one (which may be the reason behind its growing
popularity). But still, the choice depends on the acceptability of the test in your
insti. of choice.
Both tests require you to master the skills of listening, speaking, reading and
writing in the English language.
So you should decide on the basis of weightage/acceptability of the test in your
preferred region rather than babbling about test-pattern, fees-difference, duration
of the test, etc. Remember to choose the test that suits you and your country of
preference. ;)