Distinction between Cheating and Extortion are as follows:
The offence of cheating must, like that of extortion, be committed by the wrongful obtaining of a consent. The difference is that the extortioner obtains the consent by intimidation and the cheat by deception. In both cases, there is wrongful gain or loss, and in both cases the act done to induce delivery of property.
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The two offences are thus essentially the same, though the modus operandi of the offender in the two cases necessarily differs. The offence is here sub-divided into (i) cheating by representation, and (ii) cheating by personation; and of these two, the law regards latter as more serious. It also considers it as an aggravation to cheat one whose interest the cheat was legally bound to protect.
The difference between punishment for cheating under Section 417, IPC and for extortion under Section 384 are upto one year imprisonment and/or fine for cheating and upto three years imprisonment and/or fine for extortion. However for cheating and dishonestly inducing delivery of property attracts the punishment upto seven years and fine under Section 420 IPC.