I'm using icon sets provided by third party in a closed source project which might be distributed depending on the needs. All the icons will be bundled to the application.

As per my understanding, as long as I won't modify default downloaded PNGs, I'm good to go (As long as I provide a copy of license and attribute the author).

But is that assumption is correct? or am I missing something?

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According to the Commons Deed at https://creativecommons.org/licenses/by-nd/4.0/ you just need to give credits and point out changes. But if you change the it, you may not redistribute it.

So you're correct

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